What you need to know:
- DOGE is trading near the critical demand zone of $0.12 to $0.13 after a sharp market-driven correction following the recent broader sell-off.
- Breaking the resistance above $0.15-$0.16 could fuel the recovery momentum, pushing the Dogecoin price to $0.18 soon.
- Analysts warn that broader crypto market trends and Bitcoin moves will heavily influence DOGE’s next move.
Dogecoin (DOGE) is at a critical support level after the market decline. The cryptocurrency is in a crucial area, namely a demand zone. The outcome of this region will indicate whether there will be temporary relief for Dogecoin. However, investors should be cautious about possible pullbacks.
At the time of writing, DOGE is trading at $0.1221, with a 24-hour trading volume of $2.02 billion and a market cap of $20.48 billion. Over the past 24 hours, DOGE is down 3.76%, indicating a short-term setback after recent market swings.
Dogecoin tests critical demand zone
A well-known crypto analyst, BitGuru, pointed out that DOGE has undergone a major correction and is currently near a critical demand zone between $0.12 and $0.13, where existing liquidity has been absorbed.
As explained by the analyst, crossing $0.15-$0.16 could potentially open the way for a recovery to $0.18 and higher, which would give hope to anyone who closely follows Dogecoin. On the other hand, failure to do so could leave DOGE in a state of long-term consolidation.
Also read | Dogecoin Eyes Next 900% Rally As Cycles Repeat, Key Support Remains
Dogecoin recovery depends on important signals
Commenting on the potential risks, More Crypto Online’s analysis warned of possible downward pressure on Dogecoin. According to the analyst, the $0.096 and $0.08 levels should be closely monitored until a convincing sign appears indicating that the correction has reached a bear market low. Only when a micro-5 outbreak is confirmed can a worthwhile recovery be expected.
Analysts have noted that the current trends affecting Dogecoin prices are influenced by general market trends in the cryptocurrency market, including the value of Bitcoin and Ethereum.
While DOGE has managed to grab the market’s attention due to its extreme volatility and social media-fueled hype, analysts have advised taking a critical look at the critical support resistance levels to predict future upswings or downturns.
With DOGE trading close to key support points, the coming days will be crucial in deciding whether the asset can continue its recovery or move further into its correction cycle. Investors and enthusiasts are urged to keep a close eye on the area between $0.12 and $0.13.
Also read | Dogecoin Sees Big Breakout: Will $0.12 Sustain or Cause a Deep Selloff?
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