Dogecoin (DOGE) Price Hovers Near Decisive Junction as It Eyes a Rebound or Further Losses

The Dogecoin price is now at a decisive junction as it hovers near a support level that could determine its short-term direction.

Dogecoin’s price is currently facing a crucial juncture as it hovers around a key support level that could determine its short-term direction. A recent analysis on TradingView highlights the importance of the $0.394 support, with possible outcomes ranging from a bullish rebound to a further bearish slide.

Dogecoin’s Key Support Zone Faces Pressure

Dogecoin's price action over the past seven days has seen the meme coin consolidate around the $0.40 psychological price level. This zone has served as a pivot throughout 2023, with buyers and sellers clashing to determine the coin's near-term trajectory.

As per technical analysis of the 4-hour candlestick Dogecoin price chart on TradingView, the meme coin is expected to encounter the $0.394 support level in the next few hours, where a decisive price move could lead to a rebound or a further breakdown.

If Dogecoin manages to test the $0.394 support with a quick move and then quickly bounces back up, it could indicate that the bullish momentum behind Dogecoin's price is still strong. In this scenario, we could see Dogecoin retesting the $0.432 resistance. A decisive breakout above $0.432 in one swift move would give the meme coin the momentum it needs to surpass its current 2024 high of $0.485.

According to the technical analysis, the next resistance level to watch in this case is $0.485. A successful breach of this resistance might even allow Dogecoin bulls to aim for higher price points above $0.50 and possibly new all-time highs.

However, the analysis also warns of risks if Dogecoin fails to stay above $0.394. If buyers are unable to regain control at $0.394, bearish sentiment could take over. The next key support level to watch in this scenario is $0.374. Failure to find support here could amplify the bearish momentum, pushing Dogecoin's price toward the significant support at $0.342.

Dogecoin Price Leaning Toward Bullish Momentum

While technical analysis suggests that Dogecoin's price could go either way, current market sentiment seems to be pushing the cryptocurrency more toward the bullish side. Specifically, trading volume, resistance, and technical indicators are all pointing to another breakout. This sentiment builds on the anticipation of Dogecoin's price to break through multiple resistance levels in the coming weeks and months.

One technical indicator, the Gaussian Channel, suggests that Dogecoin's price is on track to reach at least $2.5 this cycle. Notably, $2 has been a recurring price target this cycle, with many analysts projecting a confirmed breakout above it by 2025.

At the time of writing, Dogecoin is still trading at the $0.4 support level, though it is currently up by a mere 0.53% in the past 24 hours.