Dogecoin’s price has been taking a beating. After failing to hold the $0.175 support level, it dipped towards a crucial zone. While a recent bounce from $0.143 created a small upward tick on the daily chart, experts warn that more volatility is likely.
Is That Bounce for Real?
Crypto analyst Trader Tardigrade points out that the recent bounce off $0.143, showing a lower wick on the daily candle, suggests buyers stepped in to prevent a further drop. However, he cautions that this isn’t a guaranteed recovery. The price could test $0.143 again, maybe even briefly breaking below it, before any real upward trend begins. This follows his earlier prediction that $0.143 and $0.128 were key reversal levels, predictions that proved accurate after the $0.175 support failed.
A Bleak Outlook
The overall sentiment around Dogecoin is pretty negative. The coin has been in a downtrend for two weeks, mirroring the broader crypto market slump. It’s lost several key support levels, wiping out most of its gains from the last quarter of 2024. Investor confidence is at a low point, with on-chain data showing the most negative sentiment (-0.93) in over a year. Even though Dogecoin is popular with retail investors, they’re currently pulling back.
More Price Swings Ahead?
Tardigrade believes Dogecoin might see some more price manipulation, potentially dipping below $0.143 briefly before recovering. He emphasizes that the recent price rejection is just an early sign of a possible reversal; more monitoring is needed. Another analyst even suggests a drop to $0.12 is possible before any significant bullish reversal.
Current Situation
At the time of writing, DOGE is trading around $0.1702, fluctuating within a narrow range over the past 24 hours. The situation remains uncertain, and whether the recent bounce is a genuine recovery or a temporary reprieve remains to be seen.