The Dogecoin price has dropped over the last few days as market headwinds move from bullish to bearish once again. This comes as there has been a decline in market participation, leading to a drop in trading volume as well. As such, the meme coin has now been pushed back toward a major support level, with resistance already mounting overhead.
Dogecoin Must Beat $0.239-$0.241
Amid the declining Dogecoin price, crypto analyst Mentor Michael has outlined the levels that the meme coin must beat in order to resume its bullish trajectory. After falling below the $0.22 level, it has now formed major resistance above, and what happens when the price retests this resistance will determine the next direction.
The first of these lies at the $0.239-$0.241 union resistance. This is the first resistance level that has formed following the Dogecoin price crash. Therefore, if DOGE is able to successfully retest and reclaim this level, it could turn it back into support and serve as the launchpad for the next price increase.
According to the crypto analyst, a break above this resistance would mean that the meme coin could move toward the mid-channel resistance. Given the recent price performance, this puts it at around $0.260-$0.280, leading to the very next step in the breakout cycle.
A sustained upward momentum would then push for the next major resistance, which was not broken in the most recent rally. $0.3 is now a target for a break to confirm a continuation or for a rejection that would invalidate the bullishness.
Failure To Reclaim Could Lead To Bearishness
In the event that the Dogecoin price fails to retest and break resistance, then it is more likely to see a bearish trend from here. This first push would be to retest the support at $0.215-$0.218, where the bears must make their stand or risk losing control entirely. This failure would set it on another path that could see it struggle and possibly move below $0.2 again before the bulls are able to reclaim control.
At this time, the crypto analyst advises investors to look for signs such as “rising volume, break and close above resistance zones, and bullish indicator alignment” to serve as confirmation for an upward move. Otherwise, it is likely that the decline will continue.
Featured image from Dall.E, chart from TradingView.com
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