Last week’s trading was risky because Doge failed to initiate a major move due to sharp drops in market volatility. It has shown signs of strength over the past few hours but remains trapped in consolidation.
Since last week, Dogecoin has remained well above the $0.3 level following a sharp rejection to $0.26, maintained as a monthly low. This caused a temporary halt to the correction, with no signs of a major recovery.
However, the recent drop in volatility has put trading into a consolidation mode, indicating indecision in the market. As the daily chart shows, the leading coin is struggling with volatility and has yet to signal its next major move, although it is showing signs of strength on the daily chart.
The consolidation, which has led the market to little to no movement since the start of this week, could end soon if buying volume increases. While last week’s rejection suggests an exhaustion of the correction, a breakout could result in an extension until it finds a solid base level.
However, it is important to note that the monthly correctional phase is still very much intact on the daily chart. A major move from the current trading level would determine the next price direction.
The key DOGE level to watch
Source: Commercial view
Losing its hold above $0.3, the price could return to the $0.262 support. A breakdown from here could drop the price to a low of $0.22 and $0.18.
Resuming its uptrend, Doge needs to retake the immediate resistance at $0.365 as well as the monthly high at $0.48. A break above this high could result in a rise to $0.6 before hitting the key $1 level by the end of this bull run.
Key Resistance Levels: $0.365, $0.48, $0.6
Key Support Levels: $0.262, $0.22, $0.18
- Spot price: $0.345
- Trend: bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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