Dogecoin Tests Key Resistance As Market Awaits Next Move

Dogecoin faces resistance at $0.175, with a possible breakout or retracement.

Support at $0.143 may hold if rejection occurs at resistance.

Market volume and momentum will determine the next price direction.

Dogecoin has reached a resistance level at $0.175 on the daily chart, holding its position below this mark. The price movement indicates a probable breakout or a downward shift to the next support level

Resistance at $0.175 Holds Firm

According to Trader Tardigrade's observation, the $0.175 resistance level has stayed intact, with Dogecoin testing it without breaking through. The price has yet to show a clear direction, and a decisive move will determine the next trend. This resistance level has acted as an obstacle in previous trading sessions, making it a vital level for price movement.

Source: Trader Tardigrade (X)

A deeper analysis indicates that Dogecoin shows a price decline from previous highs, followed by a consolidation phase. The chart presents key support levels around $0.1320 and $0.1240, with resistance near $0.1850. Two possible market movements are illustrated. One scenario shows consolidation before a breakout above resistance. The other shows a range-bound movement before a breakdown

If Dogecoin manages to break above $0.175, it could indicate a continuation of upward momentum. Sustained buying pressure could push the price toward higher levels. However, rejection at this level may lead to a shift toward lower support.

Potential Retracement to $0.143 Support

In case of rejection at the resistance, Dogecoin could retrace toward the $0.143 support level. This zone has provided stability in the past, acting as a key level where buyers may step in. The price movement within this range will determine the strength of the support level.

Market activity and volume play a role in confirming the next move. A decline in volume may indicate weaker buying interest, increasing the possibility of a downward move. Conversely, strong support at $0.143 could prevent further declines.

This price level may have established a consolidation phase to have a reverse move to the upside or downside direction. Whether or not the price breaks up the port or moves down to the support level, momentum indicators, and the volume of trading will be critical in deciding this. A move above $0.175 would suggest the stabilization of the market, and failure to get above this level should result in a lower level being tested.