Following the recent market-wide selloff, Dogecoin has faced significant pressure, experiencing a 20% decline from its local highs. Despite the decline, the popular meme coin still holds a bullish structure, keeping investors optimistic about its potential for recovery. However, current levels are critical, as Dogecoin is testing key demand zones that could determine its next move.
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Top analyst and trader BigHeads recently shared a technical analysis on X, highlighting that DOGE is testing an important demand level at $0.31 on the daily time frame. This level has historically served as a strong support zone, and holding above it could set the stage for a bounce and continuation of its uptrend. Conversely, failure to maintain this level could open the door to further downside.
Market sentiment remains cautious after the broader crypto market decline, But DOGE’s ability to maintain current levels May restore investor confidence. All eyes are now on whether the meme coin can defend this key support and potentially pave the way for a new rally or if additional selling pressure will lead to a deeper correction.
Dogecoin holds major support at the start of 2025
The beginning of 2025 has taken a different tone for Dogecoin compared to the explosive end of 2024. In early November, DOGE experienced a massive price increase of over 230% in less than three weeks. This meteoric rise saw the meme coin reach significant levels, reviving interest and optimism among investors. However, after finding a local high, Dogecoin has entered a consolidation phase, testing critical levels of support.
Currently, Dogecoin is trading around $0.31, a Key daily demand levels identified by leading analyst BigCheds. In his latest technical analysis, BigCheds emphasizes the importance of this support zone, as it can determine the next big move for the cryptocurrency. If DOGE manages to hold above $0.31, it sets the stage for a potential breakout into higher prices, reviving the rally seen in late 2024.
This consolidation phase is being closely monitored by traders and investors, as Dogecoin’s ability to maintain its bullish structure depends on this level. A clear bounce from the $0.31 demand could trigger renewed buying pressure, pushing DOGE to new highs. Conversely, losing this critical support could signal a deep correction, testing the lows before any recovery.
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As the broader market also finds its feet, Dogecoin’s performance at this key level will likely influence its trajectory for weeks to come. A successful defense of $0.31 could mark the start of another significant rally, solidifying DOGE’s position as a top contender in the cryptocurrency space.
DOGE IS A BREAKOUT
Dogecoin is currently trading at $0.33, showing resilience after holding above the critical $0.31 demand level. This support provided DOGE with a foundation to stabilize following the recent market selloff. However, the cryptocurrency remains at risk as long as it continues to trade below the $0.40 mark, a level that could quickly rebound.
For the bulls to regain control, price must decisively reclaim $0.40. This would signal a change in sentiment and provide the momentum needed to challenge the $0.43 mark. Breaking above $0.43 is an important milestone for Dogecoin, as it will likely start a significant rally in price discovery, attracting renewed interest from investors and traders.
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Conversely, failure to reclaim $0.40 in the near term leaves DOGE vulnerable to further downside. Prolonged trading below this level increases the risk of a deep correction, potentially testing the demand bottom. The next few days will be crucial for Dogecoin’s trajectory, as broad market sentiment and DOGE’s ability to reclaim key levels will determine its direction.
If the bulls manage to move above $0.43, Meme Coin could quickly gain momentum, cementing its place as a market leader in this cycle.
Featured images from Dall-E, charts from TradingView
