Dogecoin Price Gearing Up For A Big Move, What Next?

Technical indicators suggest Dogecoin ($DOGE) price is at a critical juncture where the coin can either break out or break down from its current trend.

The meme coin has been consolidating within a vital range, testing crucial resistance and support levels. Dogecoin is up within an ascending channel that, from a long-term perspective, has retraced its former price action.

The price action tells us that DOGE is at a make-or-break level, and its subsequent move may dictate where DOGE will go in the next several weeks.

According to the Fibonacci retracement levels, Dogecoin is now hovering around a major confluence zone.

A decisive break from this channel could dictate its mid-term direction as long as resistance sits at $0.35 and its strong support at $0.065.

DOGE price action is being watched closely by investors, as all eyes are on whether the coin can hold its current range or if bears take over.

Dogecoin Price Down 3% Over the Past 24 Hours

As per CoinMarketCap data, Dogecoin has been on a downward trend in the last 24 hours and has declined by 3.01% to trade at $0.1661.

Its market capitalization stands at $24.66 Billion and is also falling. The trading volume rose by 10.93% to $1.12 Billion, showing a sign of increased trading activities among traders.

It matches the general market correction, and Bitcoin and Ethereum are also retracing. Though this dip has happened, Dogecoin is one of the most traded assets, with a circulating supply of 148.47 billion DOGE.

The volume to market cap ratio, at 4.55%, is also a keen investor and analyst watch and points to increasing speculative interest.

Dogecoin Currently in a Narrow Range

Looking at a technical (TA) view, Dogecoin’s short-term price action remains within a narrow range. On the 4-hour chart from Binance, DOGE is figuring out within a consolidation, marked with a blue rectangle, during which it moves inside a range between $0.165 and $0.180.

The technical gauge of theoretical buying pressure is complemented by the Money Flow Index (MFI) at 43.6. This suggests moderate selling pressure but does not yet indicate oversold conditions. This could trigger a potential reversal if the Money Flow Index picks up.

4-hour DOGE/USDT Chart | Source: TradingView

Dogecoin (DOGE) price is also at a crucial Fibonacci level on the weekly chart. This has been a pivot for significant moves in the past.

The logarithmic trend channel is going up in the long term, but it is a cautious sentiment. For DOGE to resume a bullish move, it must first break the key resistance level at $0.183. A failure to hold above $0.165 could then push DOGE further down to the $0.150 region.

As Dogecoin is still caught in a range-based movement, technical indicators indicate that there will be volatility as the speculative sentiment on the currency remains high.

It now remains to see whether this break away from the current resistance level becomes decisive, hold above or below for at least two to three sessions.

Source