The Dogecoin price is now at a decisive junction as it hovers near a support level that could determine its short-term direction. A recent analysis on TradingView highlights the importance of the $0.394 support, with outcomes pointing toward both bullish and bearish scenarios depending on price movement at this support level.
Dogecoin’s Key Support Zone Faces Growing Pressure
The Dogecoin price action in the past seven days has been highlighted by a perambulation around $0.40, which is a key psychological threshold for the meme coin. The balance between buying and selling pressure appears tight, leading to a consolidation move that could break in any direction.
According to technical analysis of the 4-hour candlestick Dogecoin price chart on the TradingView platform, the meme coin could test $0.394 in the next few hours, and a decisive move here could lead to a rebound upwards or a further break to the downside.
In the first scenario, a short-lived dip toward $0.394 followed by a bounce would suggest that the bullish strength surrounding the Dogecoin price remains intact. From there, we could see Dogecoin retesting $0.432. A decisive break above $0.432 in one quick move would provide the much-needed momentum to break above its current 2024 high of $0.485.
As such, the technical analysis projected that, in this case, the next resistance to watch lies at $0.485. A breach of this resistance may even allow Dogecoin bulls to target higher price levels beyond $0.50 and probably into new all-time highs.
On the other hand, the analysis warns of risks if Dogecoin fails to hold above $0.394. Bearish sentiment could dominate should buyers fail to regain control at $0.394. In this scenario, the next key support to monitor is $0.374. Failure to stabilize here could accelerate bearish momentum and push the Dogecoin price towards notable support at $0.342.
Dogecoin Price Leaning Towards Bullish Momentum
Although technical analysis suggests that the Dogecoin price could go either way, current market sentiment pushes the cryptocurrency more toward the bullish end. Particularly, trading volume, resistance, and technical indicators point to another breakout. This sentiment builds upon the anticipation of the Dogecoin price to break multiple resistance levels in the coming weeks and months.
One such technical indicator is the Gaussian Channel, which suggests that the Dogecoin price is on track to reach at least $2.5 this cycle. Notably, $2 has been a recurring price target this cycle, with many analysts projecting a confirmed break above it by 2025.
At the time of writing, Dogecoin is still trading at the $0.4 support level, although currently up by a meagre 0.53% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
Read the full article here