Dogecoin took a bit of a rollercoaster ride over the weekend. Let’s break down what happened and what it might mean for the future.
A Dip Below $0.15
Dogecoin’s price briefly dipped below $0.15, its lowest point since early April. This continued a downward trend that saw its price fall about 36% in the last month. It bottomed out around $0.143 before bouncing back to about $0.153, with trading volume significantly higher than usual.
The 100-Week SMA: A Key Support Level
This dip is interesting because Dogecoin retested a crucial technical indicator: the 100-week Simple Moving Average (SMA). This SMA has acted as a strong support level for over a year. Whenever Dogecoin’s price has approached or slightly dipped below this line in the past, it’s bounced back and started climbing again.
What to Watch For
Support Zone: The key now is whether Dogecoin can stay above the $0.145 to $0.151 support zone. The quick rebound after the weekend dip shows buyers are still interested at this price. However, if the price falls below this, the bullish outlook might be wrong.
Resistance Zone: On the other hand, if Dogecoin reclaims the $0.153 to $0.16 resistance zone with strong trading volume, it could signal another rally. If that happens, history suggests Dogecoin could rise to between $0.19 and $0.21. A really strong bounce could even push it towards $0.30.
The Bottom Line
As of now, Dogecoin is trading around $0.1547, slightly down for the day. Whether it continues its upward trajectory or experiences further decline depends on whether it can maintain its position above the key support levels and break through resistance. The 100-week SMA will likely play a significant role in determining its next move.
