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Dogecoin (DOGE) Faces Test: Can It Hold and Bounce Back Stronger?
As the cryptocurrency market continues to witness significant fluctuations in prices, Dogecoin (DOGE) has been no exception. Having surged to a new high near $0.4850, DOGE faces a crucial test as it attempts to hold and bounce back stronger.
Recently, DOGE price started a downside correction from the $0.4850 zone. The asset is now trading in a positive zone above $0.3380. However, the bears are attempting to regain control as the price has dropped below the 50-day simple moving average.
Despite the recent pullback, DOGE remains above key support levels, including the $0.380 level and the channel’s trend line at $0.3920 on the daily chart. To continue higher in the near term, DOGE must surpass the $0.4350 and $0.4550 resistance levels.
If DOGE fails to break these resistances, it may signal a major pullback. In this case, the price could potentially drop towards $0.3050 or even $0.2550 if the bulls fail to defend key support levels.
It is imperative for investors to stay vigilant as the cryptocurrency market remains highly volatile and susceptible to sudden changes in sentiment. Any move below the $0.3380 level may signal a potential bearish reversal, potentially leading to significant losses for investors who fail to adapt.
Conversely, if DOGE can maintain its current price trend, it is likely that the asset will experience a further increase in value.
Source: coinchapter.com
