Dogecoin price is currently fluctuating around a critical level that will define the future direction of the asset.
According to analysts, $0.17 may be a critical area of support that can cause the price to increase; while, if the price slips below this level, more point decreases may be expected.
Therefore the price of Dogecoin will be affected by technical features, Fibonacci levels and investors’ sentiments.
Dogecoin Price Must Hold $0.17 to Sustain Its Uptrend
DOGE is testing the lower boundary of a long-term ascending channel near $0.17.
According to Ali Martinez’s analysis, this level has historically acted as strong support before major price surges.
If such levels remain intact, this will help continue the bullish formation and take DOGE towards the recovery to the upside.
A breakdown below 0.17 could nullify the formation and set a tone of bearishness among the traders.
This may take DOGE to the range or levels that will prompt investors to look at the lowest supports as the new best options.
Staying above this critical level is crucial for keeping a bullish trend in the markets.
Breaking $0.786 Fibonacci Level Could Trigger a Rally
DOGE is approaching the 0.702 and 0.786 Fibonacci retracement levels, which are crucial resistance points.
Charting Guy has highlighted these levels as key indicators of whether DOGE will continue rising or reverse downward.
Historically, breaking above the 0.786 level has led to strong bullish momentum.
If DOGE manages to break through this resistance level, it could see more buying pressure and potentially rise sharply towards $1.
Traders are now paying much attention to movements of price above these levels with an eye on the next possible direction.
However, rejection at these levels may be taken as a sign of weakness, and therefore, could lead to a pullback.
Momentum Indicators Signal Weakness in DOGE Uptrend
Momentum indicators reveal that DOGE has displayed weakness in its price trends.
RSI remains below 50 , which means that the bullish signals have not been confirmed.
Going above this level means increased demand for shares and more confidence from investors.
On-Balance Volume (OBV) has also been declining, suggesting that fewer buyers are entering the market.
Without strong trading volume and increased social sentiment, DOGE may struggle to sustain a breakout.
DOGE’s Future Hinges on Key Support and Resistance Levels
At the time of writing, the price of the top altcoin traded at $0.1700, a decline of 11.84% in the last 1 day.
The 24-hour trading volume increased by 11.44% to $1.36 billion due to increased market activity.
Notably, the DOGE price is in this bottleneck situation and the key level of $0.17 is crucial.
However, if this support bounces back, Dogecoin price could rally and rise towards other resistance levels, with the possibility of touching $2.74.
However, failure to break above key Fibonacci levels could trigger a significant decline.
Technical indicators, social sentiment, and whales’ activities are factors that determine the Dogecoin price movements.
High trading volume means the potential for a bullish uptrend, but low trading volume could lead to a downward trend.
