Dogecoin is currently struggling, dipping below critical levels after a 10% drop despite some positive movement last night. The broader meme coin market is still facing headwinds, and Dogecoin is definitely feeling the pressure. For weeks now, since late January, DOGE hasn’t been able to climb back to previous peaks, instead consistently hitting new lows week after week. This persistent selling pressure is making investors nervous, and any real recovery feels out of reach right now.

Related Reading

Even though Dogecoin has been down recently, not everyone is pessimistic. Some analysts are still holding onto hope for DOGE’s future. Notably, prominent analyst Carl Runefelt took to X to share a technical analysis. He pointed out that DOGE just broke free from a long-term falling wedge pattern and is now testing this breakout. Historically, these kinds of falling wedge breakouts can signal big price jumps, but only if the breakout is solid.

If Dogecoin can hold its ground above this crucial level and confirm this breakout, we could be looking at a major price surge, potentially flipping this bearish trend around. On the flip side, if it fails to maintain this level, we could see further drops, pushing DOGE towards lower demand areas. The next few days are going to be critical for Dogecoin’s direction in the short term as traders keep a close eye on whether this breakout is the real deal or just another false alarm leading to a slump.

Investors Keep Selling Dogecoin: Can This Change?

Dogecoin is at a make-or-break point right now, trying to push past key resistance while desperately holding above critical support levels. The bulls are trying to fight back and regain ground, hoping to spark a significant rally, but in the short run, the price action is still anyone’s guess.

Related Reading

The meme coin market has been feeling the heat from intense selling pressure, and Dogecoin has really struggled to build up strong demand, even with a few attempts to break out. Investors are on high alert, waiting for any sign of strength, but so far, the bulls haven’t been able to muster the momentum needed for a lasting comeback.

Runefelt’s technical analysis reveals that DOGE recently broke out of that long-term falling wedge we mentioned and is currently retesting it. He highlights that historically, these falling wedge breakouts often lead to explosive price surges, as long as the breakout holds strong. In fact, Runefelt has predicted a price target of $0.434 for DOGE in the coming weeks, if this breakout stays valid.

However, even with this potentially positive setup, it’s still unclear where the overall crypto market is headed, especially while Bitcoin remains under the $100K mark. Since Bitcoin tends to lead the charge for the entire crypto space, meme coins like Dogecoin will likely mirror Bitcoin’s price action. If BTC manages to climb back above key levels, DOGE could see a quick jump in price. But if the broader market uncertainty continues, this could limit how much upside Dogecoin can actually achieve.

DOGE Testing Short-Term Liquidity

Currently, Dogecoin is trading around $0.21 after a significant 33% rally in the last few days! The bulls have managed to grab a bit of control, pushing the price above some key resistance points. But for DOGE to keep this upward momentum going, it absolutely needs to stay above the $0.20 mark, which is now acting as a crucial short-term support level.

Looking ahead, if the bulls can successfully push the price back up to $0.255 in the coming days, Dogecoin could be on the verge of a major breakout, potentially kicking off a full-blown recovery phase. Breaking through this level would confirm a bullish trend reversal and could really ramp up buying interest, potentially sending DOGE soaring towards higher resistance areas.

But remember, the market is still pretty unstable, and if that $0.20 level doesn’t hold, all those recent gains could vanish quickly. If DOGE falls below this support, we could be looking at a sharp 15% drop, dragging the price back down to lower demand territories. Traders are definitely keeping a close watch on Bitcoin, because any big sell-off in BTC could drag down meme coins like Dogecoin right along with it.

Related Reading

For now, the DOGE bulls are in the driver’s seat, but they need to keep up the defense of these key levels if they want to keep this uptrend going. A definitive move in either direction is on the horizon and will really determine what’s next for Dogecoin.

Featured image from Dall-E, chart from TradingView