Cryptocurrency Market analyst Kevin points out that Dogecoin (DOGE-USD) is testing a pivotal point in its pricing table. After struggling with a month-long downtrend, DOGE is now making a crucial move to break free from its falling channel, signaling rally potential.
Resilience fuels hope for bullish momentum
On the technical side, Kevin observed that Dogecoin was “back-testing” the upper limit of its recent trading pattern. “It is crucial that DOGE holds strong and bounces back,” he emphasized, suggesting a reassessment if it fails to maintain this momentum. THE cryptocurrency showed tenacity, rebounding from a brief decline and closing well above the trendline, fueled by its alignment with important moving averages.
Dogecoin’s outlook is linked to Bitcoin
Kevin warns that Dogecoin’s prospects are closely linked to Bitcoin market movements and external market shocks, such as the recent introduction of a memecoin by associates of the new US President Donald Trump. This put a damper on the cryptocurrency market, potentially affecting Dogecoin’s trajectory despite its technical promise.
As Dogecoin tests the waters above its crucial support level, its ability to maintain and build upon the current price near $0.40 will be key to confirming the bullish outlook.
At the time of writing, Dogecoin stands at $0.3687.
