In recent days, the price of Dogecoin has struggled to hold steady as Bitcoin's price hit multiple resistance levels. This has caused a wave of liquidations for cryptocurrency traders who bet on prices rising higher. The decline has also raised concerns about whether the bullish trend that started earlier this month has ended.
Dogecoin Price Faces Major Resistance
Cryptocurrency analyst MindfullyLost has explained what has been affecting the price of Dogecoin recently. According to the analyst, Dogecoin's price has been well supported above 4HR, maintaining above $0.21, even in a downtrend.
Additionally, when it comes to the hourly chart, there is also support forming for Dogecoin at this level. This comes after a retest of the $0.22 level before the buyers could bounce back. This indicates weakness in this support and it could fail with a more dominant move.
Currently, there is an increasing resistance level at $0.23 for Dogecoin's price, and the bears have begun to lower this level. As the cryptocurrency analyst points out, surpassing this level will confirm Dogecoin's bullish trend, turning it into a buying zone.
The next major resistance level is at $0.25, and this is a decisive moment for Dogecoin. Bullish speculators will have to fully test and surpass this resistance level. Otherwise, the possibility of the price dropping back to the support level of $0.21 remains high.
What Will DOGE's Next Move Be?
The price of Dogecoin is currently consolidating, and according to the cryptocurrency analyst, this consolidation could continue for a while. This will translate into sideways price volatility in the near future, as well as continue the battle for dominance between the bears and the bulls.
Bulls will have to start pushing the price higher to truly attempt to test the first resistance level. Until then, Dogecoin could plunge deeper into the oversold territory, which would not be entirely bad for the price, making the recovery even stronger.
Regarding how high the price of Dogecoin could rise if it breaks through major resistance levels, some cryptocurrency analysts have predicted the price could return to at least the previous all-time high of $0.71. While others speculate that $1 is the natural target for Dogecoin, and two-digit predictions, such as reaching highs of up to $10, have also become a focal point.
