Dogecoin (DOGE) Eyes New Bullish Trend Amid Market Recovery

The recent price movements of Dogecoin have been influenced by broader market trends and macroeconomic factors, particularly the fallout from President Donald Trump's tariff policies.

Dogecoin (CRYPTO: DOGE) is showing signs of a potential bullish trend following a 16% recovery from recent lows, but analysts warn of a crucial resistance level that the token must overcome to solidify this upward momentum.

What Happened: The recent price movements of Dogecoin have been influenced by broader market trends and macroeconomic factors, such as the fallout from President Donald Trump's tariff policies, which have contributed to heightened trade tensions.

Rising from a yearly low of $0.14, Dogecoin touched a yearly high of $0.4350 on January 18, but this rally was short-lived as the token faced strong selling pressure.

After reaching a high of $0.17 on March 10, Dogecoin's price dropped dramatically, plummeting 67% to a low of $0.1430 on March 11. However, the token has since recovered significantly, and its price is currently showing signs of a potential upward trend.

The SuperTrend indicator, a technical analysis tool that helps identify price trends and potential reversals, suggests that Dogecoin could enter a bullish phase if it successfully breaks through the resistance level at $0.21, according to market analyst Ali Martinez.

This would mark a significant move for the token, as it would indicate a shift in momentum and open the door for further gains.

Crucial Support Level For Dogecoin

Martinez further identified the key support floor for the Dogecoin price at $0.177, which will be crucial in determining whether the token can sustain its recovery or if it will face another downtrend.

"If the bulls can defend this lower support, we might see a continuation of the recent recovery, potentially leading to a retest of the $0.28 resistance," the analyst stated.

However, should Dogecoin fail to hold this support level, it could revisit once again the $0.14 price point, where significant buying pressure previously helped support the price.

This scenario could erase the gains made over the last two weeks, returning the token to the starting point of its recent recovery.

"A break below this level could open the door for a continuation of the bear market, potentially leading to a retest of the $0.07 support, which played a key role in halting the previous decline," Martinez added.

According to data from Glassnode, 7% of Dogecoin's total supply is concentrated at the $0.20 mark, making it the third-largest concentration after $0.17 and $0.07.

This suggests that the $0.20 level may act as a formidable resistance point in the near term, as many wallets are likely to find support at this price level.

Those who acquired their holdings at lower prices, such as $0.17 or $0.07, may be motivated to sell their tokens if the price rises above these levels, encumbering the rally.

Dogecoin Price Action: Dogecoin is trading at $0.1907, up 0.30% over the 24-hour period, according to Benzinga Pro.

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