Dogecoin (DOGE) is at a critical support level following the market downturn. The cryptocurrency is in a crucial area, which is a demand zone. The outcome of this region will indicate whether there will be a temporary relief for Dogecoin. However, investors should be cautious about potential pullbacks.
At press time, DOGE is trading at $0.1221, with a 24-hour trading volume of $2.02 billion and a market capitalization of $20.48 billion. Over the last 24 hours, DOGE has dropped 3.76%, signaling a short-term setback after recent market fluctuations.
Dogecoin Tests Critical Demand Zone
A well-known crypto analyst, BitGuru, pointed out that DOGE has undergone a major correction and is currently poised near a critical demand zone between $0.12 and $0.13, where the existing liquidity has been absorbed.
As explained by the analyst, crossing above $0.15-$0.16 could potentially open the way for recovery to $0.18 and above, giving hope to all who are closely following Dogecoin. On the other side, failure to do so may cause DOGE to be in a state of prolonged consolidation.
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Dogecoin Recovery Depends On Key Signals
Commenting on the potential risks, More Crypto Online’s analysis warned of potential pressure on Dogecoin downwards. According to the analyst, until a conclusive sign emerges to suggest the correction has reached a bear-market low, the levels of $0.096 and $0.08 would need to be closely observed. Only when a micro 5-wave breakout is confirmed would a worthwhile recovery be anticipated.
Analysts have observed that the current trends affecting Dogecoin prices are influenced by overall market trends in the cryptocurrency market, including Bitcoin and Ethereum value.
Although DOGE has managed to grab market attention because of its extreme volatility and social media-fueled hype, analysts have advised taking a close look at critical support-resistance levels to predict future rebounds or dips.
With trading of DOGE close to key supports, the next few days are set to be critical in deciding whether the asset will be able to continue its recovery or progress further through its corrective cycle. Investors and enthusiasts are urged to keep a close watch on the $0.12-$0.13 area.
Also Read | Dogecoin Eyes Major Breakout: Will $0.12 Hold or Trigger Deep Sell-Off?
