Key Insights:
- Dogecoin’s price is testing major support levels, with $0.067–$0.070 seen as a critical area before further downside.
- The DOGE market remains active, with increasing transaction volume and addresses indicating potential market rotation.
- If DOGE holds above $0.094, it could attempt a recovery toward higher levels, but downside risks remain significant.
Dogecoin’s (DOGE) price has once again slipped into a dangerous territory, causing concern among traders. As the cryptocurrency drifts back into previously tested support zones, it faces a pivotal moment where a bounce or continued decline will determine its near-term trajectory. The market’s structure is becoming increasingly volatile, with the charts signaling bearish momentum while also hinting at the potential for sudden price reversals.
The momentum surrounding Dogecoin remains firmly bearish. Recent price action has seen DOGE break through key levels of support, and the next significant floor sits much lower. Currently, the monthly chart indicates a major support area around $0.054, a zone that traders are closely watching.
While the price hovered around $0.102 in recent days, this level appears weak, with no clear signs of substantial buying support. The market seems to be stalling rather than reversing, suggesting that if sellers regain control, the next significant test could lead DOGE much lower.
Active Network Despite Falling Prices
Interestingly, even as Dogecoin’s price continues to fall, on-chain metrics show increased network activity. According to data from Glassnode, active addresses have spiked, and transaction volumes have picked up.
This could be indicative of traders repositioning themselves near key support levels, with some possibly rotating out of positions or preparing for a potential bounce. While this surge in network activity doesn’t definitively signal a bullish reversal, it suggests that the market remains engaged, and any shift in sentiment could lead to sharp movements.
Struggling to Break Key Resistance
On the daily chart, DOGE remains below its 100-day moving average, which is acting as a resistance level around $0.14. The lack of upward momentum means that any rallies are unlikely to be sustained unless this key level is reclaimed. For a trend reversal to materialize, Dogecoin would need to break through this resistance and hold its ground above $0.094, a crucial level that would give bulls a fighting chance. Without this breakout, the price could slide further into the red.
The 4-hour chart reveals a narrow trading range, with DOGE battling to maintain levels around $0.09. Overhead resistance at $0.115 is proving difficult to overcome, suggesting that the market remains heavy. If the price fails to regain $0.094, the next support area in the $0.067–$0.070 range could become the focus for traders.
Any further breakdown below these levels would shift attention toward $0.054 as the primary support zone. Consequently, DOGE faces a critical make-or-break moment in the coming days.
