Dogecoin price is now at a decisive crossroads since it is located near a support level that could determine its short-term direction. A recent analysis on TradingView highlights the importance of the $0.394 support, and the results point towards both bullish and bearish scenarios depending on the price movement at this support level.
Dogecoin Key Support Zone Faces Increasing Pressure
Dogecoin price action over the past seven days has been highlighted by a swing around $0.40, which is a key psychological threshold for the meme coin. The balance between buying and selling pressure appears tight, leading to a consolidation move that could break in either direction.
According to technical analysis According to the Dogecoin price chart with 4-hour candles on the TradingView platform, the meme coin could test $0.394 in the coming hours, and a decisive move here could lead to an upward bounce or a fresh break down.
In the first scenario, a short-lived drop towards $0.394 followed by a bounce would suggest that the bullish force surrounding Dogecoin price remains intact. From there, we could see Dogecoin retest $0.432. A decisive break above $0.432 in a quick move would provide the much-needed momentum to surpass its current 2024 high of $0.485.
As such, technical analysis projected that in this case, the next resistance to watch lies at $0.485. A break of this resistance may even allow Dogecoin bulls to target higher price levels above $0.50 and likely reach new all-time highs.
On the other hand, the analysis warns of the risks if Dogecoin fails to stay above $0.394. Bearish sentiment could dominate if buyers fail to regain control at $0.394. In this scenario, the next key support to monitor is $0.374. Failure to stabilize here could accelerate the bearish momentum and push Dogecoin price towards notable support at $0.342.
Dogecoin price leans towards bullish momentum
Although technical analysis suggests Dogecoin price could go in either direction, current market sentiment pushes the cryptocurrency further toward the bullish extreme. In particular, trading volume, resistance and technical indicators. They point to another breakup. This sentiment is based on the anticipation that Dogecoin price will break multiple resistance levels in the coming weeks and months.
One of those technicians The indicator is the Gaussian channel. suggesting that Dogecoin price is on track to reach at least $2.5 this cycle. In particular, $2 has been a recurring target price this cycle, and many analysts project a confirmed breakout above it by 2025.
At the time of writing, Dogecoin is still trading at the $0.4 support level, although it is currently up a meager 0.53% over the past 24 hours..
Featured image created with Dall.E, chart from Tradingview.com
