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The Dogecoin priceappears to be on a continued rebound, with bulls regaining some control over the market after weeks of sideways trading and downward pressure. However, the momentum is being tested as strong resistance builds around the $0.205 level. A recent analysis highlights this crucial zone and outlines the roadmap for Dogecoin’s next move. Dogecoin Price Recovery Faces Critical Resistance
TradingView crypto analyst Lingrid recently shareda technical analysis featuring a classic continuation pattern unfolding for Dogecoin. The analyst revealed that the Dogecoin price is attempting a recoveryafter rebounding from a key ascending trendline and breaking out of a Falling Wedge pattern. Related Reading Dogecoin Price Continuation Shows Rebound, But Resistance Is Mounting At $0.205 56 minutes ago
Following this, Dogecoin is now retesting the breakout levelaround $0.175, where both the wedge resistance and ascending trendlineconverge. The cryptocurrency has also formed a higher low structure on its price chart. Notably, this breakout zone is critical, as holding above it would confirm the breakout and set the stage for potential gains. Source:Lingrid on Tradingview
Lingrid has revealed that traders are currently watching closely for continuation toward the next resistance area. The $0.19 level has been set as the next immediate breakout target, aligning with the top of the previous range and the midpoint of the broader resistance area.
A push beyond $0.19 would open the door for a run toward the range between $0.2 – $0.21, a key resistance area where selling pressurescould intensify. While Dogecoin’s structure remains relatively bullish with higher lows forming, Lingrid has also cautioned that overhead resistance near $0.19 and $0.2 could slow down the momentum.
Notably, Dogecoin’s trading volumewill also play a key role in its price action and future moves. As the price approaches the wedge apex, fluctuations in volume could either sustain the strength of the rally or weaken it. DOGE To Decline Further If Support Fails
Since the beginning of this year, the Dogecoin price has recorded its fair share of unexpected price declines and volatility. While Lingrid’s analysis shares encouraging signs of a potential price recovery and bull rally, Dogecoin’s breakout remains at risk. Related Reading Dogecoin Price Poised For Breakout Amid Accumulation, Here’s The Target 1 week ago
If its price fails to hold the critical support zone at $0.175, especially with a strong candle close below this level, the projected breakoutcould be invalidated. This would, in turn, potentially lead to a steeper price breakdowntoward $0.15, representing a 25% decrease from its current market value of $0.2.
Lingrid also mentions that a failure to maintain buyer interest near the wedge apex and weakening volumecould also contribute to market indecision, making a swift recovery less likely. As a result, traders are advised to watch the $0.175 zone closely as a key breakout point that will determine whether Dogecoin resumes its climb or faces renewed downward pressure. DOGE trading at $0.20 on the 1D chart | Source: DOGEUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com