As Dogecoin’s price has approached the key resistance zone between $0.10 and $0.11 in recent weeks, technical indicators have become the focus of traders. Dogecoin, which has been horizontal for a long time and formed a base, has built a similar base structure again on the weekly charts. Expert traders state that if the price breaks upwards at these levels, a significant movement may be triggered.
Technical analysis: Resistance and support zones
In the chart shared by TraderSZ, one of the experts, it was emphasized that the main level to pay attention to for Dogecoin is the yellow support line in the lower band. The price has returned to this zone several times in the past, but selling has not been allowed to extend below this support. Maintaining this zone shows that buyers are still active in the market.
On the other hand, there is a clear descending resistance line above the price. In order for Dogecoin’s upward movement to strengthen, this trend line must be clearly crossed. Currently, prices are hovering just below this resistance line, and traders think that new targets may come to the fore after an upward break.
According to TraderSZ, the current structure may be a repeat of the bottom formation and subsequent breakout seen in the previous cycle. At that time, Dogecoin broke the resistance line after a long base and a strong rise was experienced. Currently, prices are stuck below the trend line.
Mini dictionary: Descending trend line is a technical analysis tool drawn by combining the last peaks of the price and shows the ongoing downward trend in the market.
Critical decision phase of the price
In the chart shared recently by another crypto analyst named Moe and compared with the previous bottom structure in 2024, it is seen that Dogecoin is holding above the current base level. The analyst thinks that if the DOGE price can make weekly closes above the resistance zone, a similar move to the previous one may occur. At this point, it is stated that candles “without a long wick” are a sign that the upward movement is not strongly rejected by the sellers.
In this structure, the green resistance band is positioned between $0.10 and $0.11. Dogecoin has reached this region, but the breakout is not yet fully confirmed. In order for the price to continue its rise, this resistance line must be crossed clearly.
Support loss risks and possible scenarios
It is an important detail that the lower support level was recently crossed upwards and then tested again. If the price declines from here, the possibility of a decline in the short term may increase and previous bottoms may come to the fore again for investors. Otherwise, purchases from the support may move the price upwards.
On the current outlook, Dogecoin is trading just below the critical three-month resistance zone. A consistent rise above this level on a weekly basis may technically bring up the possibility of a stronger rally. However, if there is a harsh rejection from the resistance, DOGE may return to the horizontal band again and the current consolidation process may be prolonged.
In summary, as activity continues on the Dogecoin front, both long-term support and short-term resistance levels are critical. Investors are expected to focus on price movements in these regions to monitor the market’s decision.
