Dogecoin is currently between the support level of $0.18 and the resistance level of $0.29—will it break through or drop?

Dogecoin currently hovers around the support level of $0.18, and signs of large investors (whales) and network activity may suggest potential breakout possibilities. However, technical indicators show both MACD and RSI displaying bearish trends, indicating that if Dogecoin cannot successfully break through the key resistance level of $0.29, its price may continue to decline.

Recently, the price trend of Dogecoin [DOGE] has shown some volatility, with previous pullbacks erasing some of the early gains. As of the latest data, Dogecoin's trading price is $0.1681, with a trading volume of $844 million in the past 24 hours and a price change rate of -0.43%. However, it is worth noting that Dogecoin achieved a 3.24% increase over the past week.

Despite the recent price correction of Dogecoin, market participants remain cautiously optimistic, believing that the token could rebound to $0.29. This expectation is supported by key technical positions and market dynamics. After several pullbacks from highs, analysts believe that Dogecoin may still reach the target price of $0.29 in the short term.

This prediction largely depends on how close the Dogecoin price is to its 20-day Exponential Moving Average (EMA). If Dogecoin can successfully hold above this EMA level, it may provide strong support for future price movements. Traders are closely watching this key level for signs of market stability, which could indicate a rebound for Dogecoin. However, if Dogecoin fails to break through the EMA, its price may face further downward pressure.

According to analyst Igor Bondarenko, if Dogecoin struggles to gain upward momentum at the current level, its price could even drop to $0.10, which would create a highly unfavorable bearish situation for the cryptocurrency.

MACD and RSI show bearish momentum

At the time of writing, the MACD indicator shows a bearish trend for Dogecoin. The MACD line (blue) is below the signal line (orange), indicating a lack of upward momentum.

Additionally, the histogram remains predominantly negative, reinforcing the current weakness in the market.

The RSI is at 36.97, slightly below the neutral 50 point. This level indicates that DOGE is in the oversold territory, and if it continues to fall below 30, it may signal further selling pressure.

If the RSI remains below 40, the market may continue to be weak, potentially leading to further adjustments.

Whale activity and network participation

Despite the bearish signals, the activity on the Dogecoin network has increased. According to cryptocurrency analyst Ali Martinez, the number of active addresses has significantly increased from 150,000 on March 12 to over 280,000 on March 14.

With a significant increase in network participation, the price of Dogecoin (DOGE) has risen from $0.16 to $0.26, clearly indicating that the increase in network activity directly drives market demand. However, the subsequent price retreat also reveals that the initial upward momentum fueled by network enthusiasm has begun to weaken.

During this period, large trading activities surged, particularly with records showing that whales (large investors) purchased over 110 million DOGE within a week. The active influx of these major market participants undoubtedly supports the short-term bullish trend. However, at the same time, this may also mean that some buying pressure is short-term and temporary, lacking long-term sustainability.

The subsequent price pullback further confirms this, indicating that the market may be experiencing profit-taking or a natural adjustment phase, which collectively led to the price decline.

Resistance and support levels

During this uncertain period that Dogecoin is experiencing, clear key resistance and support levels have become the focus of the market. On March 6, Dogecoin's price reached $0.202, which is currently still viewed as a strong resistance area.

Successfully breaking through this level may be seen as a positive signal for the continuation of the bullish trend, opening up space for further price increases for Dogecoin. However, if Dogecoin fails to hold above $0.202, it may indicate that the market will enter a longer period of consolidation, potentially triggering a new round of declines.

On the downside, $0.18 has formed an important support level for Dogecoin. If this support level is effectively broken, it may signal a weakening of market sentiment, with bearish trends likely to prevail, potentially subjecting Dogecoin's price to greater downward pressure.

Given the ongoing volatility and uncertainty in the current market, the trends in the coming days will be particularly critical for assessing Dogecoin's next major movement.