Dogecoin price prediction – Traders, watch out for these key levels now!

• Dogecoin needs a strong breakout to reverse its prevailing bearish trend
• MVRV Ratio at -11.69% hinted at undervaluation, but sustained buying pressure may be required for upward momentum

Dogecoin [DOGE] has struggled to regain its footing after taking a significant hit during the last trading session. In fact, the price remains trapped within a descending channel, facing stiff resistance levels that need to be broken before any substantial recovery can take place.

Analyzing recent support and resistance levels can lend us some insights into whether DOGE can mount a comeback or or not.

Key support and resistance zones

At the time of writing, Dogecoin was trading at $0.244, up by 2.12% in the last 12 hours. However, its latest attempt at recovery faced strong resistance near the $0.262-level, which aligned with the 0.236 Fibonacci retracement level. 

Above this, the next critical hurdle lay at $0.274, where the 0.382 Fibonacci level seemed to be positioned. A break beyond this range could see DOGE attempt to reclaim $0.284 – In alignment with the 50% Fibonacci retracement level.

Source: TradingView

On the downside, support formed around $0.238, preventing further declines for now. If DOGE fails to hold this level, the next key support would be at $0.220 – A psychological barrier that traders will be watching closely.

Dogecoin trend channels indicate bearish bias

DOGE’s price action seemed to be constrained within a descending trend channel, a structure that has provided resistance to bullish breakouts. 

The 50-day moving average $0.271 has continued to act as a dynamic resistance, reinforcing the bearish bias. Additionally, the 200-day moving average of $0.348 was far above the press time price – A sign that a long-term bullish reversal may take time.

Market sentiment and MVRV insights

Finally, DOGE’s Market Value to Realized Value [MVRV] ratio over the past 30 days revealed a reading of -11.69%. This suggested that the asset may still be undervalued, compared to historical norms.

Source: Santiment

While this could indicate a potential buying opportunity, it could also point to the broader market’s hesitation in pushing Dogecoin higher. If buying momentum does not climb, DOGE could continue its range-bound movement.

What next for Dogecoin?

For Dogecoin to break out of its current downtrend, it needs to reclaim $0.274 as a key pivot zone. A sustained move above this level could open the door for a rally towards $0.30 and beyond. Conversely, failure to maintain support at $0.238 could see DOGE slide towards $0.220 or even lower.

With market sentiment still cautious, traders should keep an eye on volume and overall market conditions before making decisive moves. The coming days will be crucial in determining whether DOGE can regain momentum or if further downside awaits.