Will Dogecoin Hold Support Levels or Drop Below?

The post Will Dogecoin Hold Support Levels or Drop Below? appeared first on Coinpedia Fintech News

Dogecoin’s price is back in the spotlight after a surprising jump past a critical resistance level. But will this rally continue, or could the crypto favorite hit some bumps along the way? Here’s a closer look at Dogecoin’s latest movement, key levels, and what they mean for its future.

Dogecoin Facing Resistance

Dogecoin (DOGE) saw a big boost recently, climbing beyond $0.320 and peaking at $0.4342. Yet, as with many price surges, resistance came into play, and DOGE began cooling down. Currently, Dogecoin is holding above $0.3650 and staying steady around the 100-hour simple moving average, which is often a positive sign in technical analysis.

However, there are tough resistance levels right ahead at $0.400 and $0.4150. These points will be crucial if Dogecoin aims to go higher, possibly up to $0.4500 or even $0.4650. If it manages to clear those barriers, it might signal another upward swing. But if the price struggles at these points, Dogecoin might find itself retracing back down.

DOGE Whale Activity

Right now, it’s an interesting time for Dogecoin investors. Data from IntoTheBlock reveals that around 96% of DOGE holders are currently in profit, with only a small 2% at a loss. This data points to a solid base of happy, long-term investors. But some big players, often called whales, are holding short positions slightly above the current DOGE price, showing they’re not convinced about an immediate breakout.

These whales are important because they often set price zones that keep DOGE in place. Their cautious approach could be a sign that they’re waiting for stronger support below before backing another climb.

Technical Trends and Support Zones

Technical analysis is also throwing out some helpful signals. A trend line is forming around the $0.3870 level, which aligns well with the 61.8% Fibonacci retracement level from Dogecoin’s recent highs and lows. This area around $0.3870 could be a strong support level, holding Dogecoin steady if it faces more pressure.

If Dogecoin does dip below, however, it might test supports as low as $0.3420 or even fall toward $0.3150. So, while there’s a clear path for further gains, any slip below these levels could signal a short-term pullback.

What to Expect

Dogecoin’s recent rally has caught a lot of eyes, and there’s definitely excitement in the air. But with the resistance levels ahead and whale activity showing some caution, this may not be a clear run. If Dogecoin can stay above its key support zones, we might see it attempt higher prices soon. However, a drop below $0.3420 could bring a short-term pause in the climb.

As always with crypto, Dogecoin’s future is uncertain, but its current price movements give investors some strategic levels to watch closely. As Bitcoin leads towards $100k, there are high hopes for DOGE to create a new high.