Recently, Dogecoin has displayed a dynamism that is more typical of lesser meme currencies. Following an incredible rise, Dogecoin’s price has run into significant resistance, which has caused a noticeable reverse. This almost 13% reversal might be the beginning of a significant decline that wipes away some of the incredible gains from just a few days ago.
According to a technical study of Dogecoin’s price movement, the cryptocurrency reached a strong resistance level following the surge, which caused the price to sharply retrace. Once a place of consolidation, this resistance level is now a hurdle that the meme coin finds difficult to overcome.
Following a time of aggressive purchasing, there has been a downturn as the market has started to exhibit caution. In the short term, it is important to keep an eye on the support levels around $0.0881 and $0.0796. A prolonged decline below these levels would portend a more significant correction and usher in a bear market period for Dogecoin.
As we look to the near term, we may see a prolonged period of adjustment if the support levels fall short. The price of the meme currency would then probably look for earlier historical support levels and retreat back to $0.11.
On the plus side, Dogecoin may consolidate and be ready for another effort to break through the barrier if it can stabilise and hold its current levels of support. This would necessitate a rebound in purchasing power, maybe sparked by encouraging news or a fresh interest from well-known individuals or social media platforms.
