Dogecoin (DOGE) has recently entered a price fluctuation phase, with the USD exchange rate falling below the $0.2620 area, starting a new downward trend. As the price hovers around $0.2550, market sentiment is tense: will it break through this resistance and start to rebound, or will it continue to decline until a lower support level?
Price decline: Dogecoin's stress test
Recently, Dogecoin's price fell below the key support levels of $0.270 and $0.2620, and is also below $0.2580, which has had a negative impact on the market. On the hourly chart of the DOGE/USD pair, it broke the connecting bearish trend line, but $0.2550 remains an obstacle that the bulls cannot overcome.
From a technical perspective, Dogecoin is in a price fluctuation consolidation phase. After falling below $0.2620, DOGE dropped to as low as $0.2420, forming a new low. Even though the price is currently attempting to rise, breaking through the resistance at $0.2550 remains a challenge.
Bulls' hope: Is a key breakout imminent?
Despite the current downward pressure on Dogecoin, there is still a chance for a rebound. If the price can break through the important resistance levels of $0.2550 and $0.2620, DOGE may initiate a new upward trend.
The first key resistance level on the upside appears around $0.2625, which is also the 50% Fibonacci retracement level from the $0.2830 high to the $0.2420 low. If the area is broken, DOGE's upside potential will further open up, possibly pushing the price to $0.2720 or even higher.
Next step: How long can it rise after the breakout?
If DOGE successfully breaks through $0.2720 and closes above this level, the next target will be $0.300, followed closely by a challenge to the $0.320 high. If the breakout continues, this upward movement may accelerate further.
However, it all depends on whether Dogecoin can break through key resistance levels in the current price fluctuation. If the bulls fail to break through these critical areas, DOGE may face a deeper correction.
Can Dogecoin break the deadlock and welcome a rebound?
The current market sentiment is filled with uncertainty, and the movement of Dogecoin may continue to fluctuate in the short term. Whether it can break through $0.2550 and start a rebound, or continue to be suppressed by selling pressure, remains to be seen in the coming days.
