Dogecoin (DOGE), the popular meme coin, is currently trading near a crucial support zone between $0.146 and $0.151.
This price range is being closely watched by analysts, as a break below it could signal further bearish movement. Crypto analyst, pseudonymously known as BitLuxe, stated in a X (formerly Twitter) post on April 16:
“Consider a long position with tight stop loss, but watch for bearish signs below this zone,” the expert noted.
DOGE price chart. Source: X
The cryptocurrency analyst’s post also highlights that if the current support fails to hold, Dogecoin could find its next potential support level at $0.122-$0.13.
Conversely, a climb above its current resistance zone of $0.168-$0.173 by DOGE could signal a potential trend reversal towards higher prices.
Dogecoin price analysis
Despite experiencing a temporary price increase on April 15, following Elon Musk’s tweet expressing support for Dogecoin, the meme coin is currently undergoing a price correction along with the broader cryptocurrency market which has wiped $140 billion from its market capitalization in the last 24 hours.
At the press time, DOGE is trading at $0.152, reflecting a decline of 6.67% in the last 24 hours and a major 20.81% decrease over the past week.
DOGE 7-day stock price chart. Source: Finbold
Looking at the technical indicators spells out a decidedly bearish sentiment with an overall ‘sell’ rating. Moving average, along with oscillators, point toward a ‘sell.’
Technical indicators for DOGE stock. Source: TradingView
The recent price volatility illustrates Dogecoin’s sensitivity to external factors, including broader market trends and, as evidenced by the recent surge, like Elon Musk’s tweet.
Looking ahead, potential integration with Musk’s company X digital payment services could provide a long-term boost.
Furthermore, the upcoming Bitcoin halving, which historically reduces supply and increases Bitcoin’s price, could indirectly benefit DOGE by raising the entire cryptocurrency market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
