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After the recent selloff of the entire market, Dogecoin faced a lot of pressure, experiencing a 20% drop from its peak. Despite the decline, the popular meme coin still has a bullish structure, which keeps investors optimistic about its potential to sustain. However, the current levels are important, as Dogecoin is testing the main demand areas that could determine its next move.
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Top analyst and trader BigCheds recently shared a technical analysis on X, highlighting that DOGE is testing key demand at $0.31 on a daily basis. This level has historically served as a strong support area, and a hold above it could set the stage for a bounce and continuation of its bullish trend. Conversely, failure to maintain this level may open the door to a further downward spiral.
Market sentiment remains cautious following the broader crypto market downturn, but DOGE’s ability to hold current levels could restore investor confidence. All eyes are now on whether the meme coin can defend this key support and pave the way for a new rally or if more selling pressure will lead to a deeper correction.
Dogecoin Holds Key Support As 2025 Begins
The beginning of 2025 took a different tone for Dogecoin compared to the end of the 2024 boom. Since the beginning of November, DOGE experienced a huge price increase, gaining more than 230% in less than three weeks. This meteoric rise has seen the meme coin reach significant levels, commanding interest and optimism among investors. However, since the peak of the area, Dogecoin has entered a consolidation phase, testing important support levels.
Currently, Dogecoin is trading around $0.31, a key daily demand level identified by BigCheds top analyst. In his latest technical analysis, BigCheds emphasizes the importance of this support zone, as it can determine the next big move of the cryptocurrency. If DOGE manages to hold above $0.31, it sets the stage for a potential breakout to higher prices, dominating the bullish momentum seen in late 2024.
This consolidation phase is closely watched by traders and investors, as Dogecoin’s ability to maintain its bullish structure depends on this level. A clean jump in demand to $0.31 could trigger renewed buying pressure, propelling DOGE to new highs. Conversely, the loss of this key support may indicate a deep correction, testing low levels before any recovery.
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As the broader market also finds its footing, Dogecoin’s performance at this key level will likely influence its path in the coming weeks. A successful defense of $0.31 could mark the start of another important rally, strengthening DOGE’s position as a top contender in the cryptocurrency space.
DOGE Eyes Breakout
Dogecoin is currently trading at $0.33, showing strength after holding above the key demand level of $0.31. This support provided the basis for DOGE to stabilize following the recent market selloff. However, the cryptocurrency remains vulnerable as long as it continues to trade below the $0.40 mark, a level that may renew bullish momentum.
For the bulls to regain control, the price must quickly re-claim $0.40. This will signal a change in sentiment and provide the momentum needed to challenge the $0.43 mark. A break above $0.43 is an important milestone for Dogecoin, as it could trigger a major rally in price discovery, attracting renewed interest from investors and traders.
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On the other hand, failure to recover $0.40 in the near term keeps DOGE vulnerable to downside. Long-term trading below this level increases the risk of a deep correction, which may test lower levels of demand. The next few days will be crucial for Dogecoin’s trajectory, as broader market sentiment and DOGE’s ability to recover key levels will determine its direction.
If the bulls manage to push above $0.43, the meme coin could quickly gain momentum, cementing its place as the market leader this cycle.
Featured image from Dall-E, chart from TradingView