Dogecoin Holds Above $0.14 Support: Will It Reach $0.16 Next?

Dogecoin (DOGE) shows signs of potential price movement as technical indicators and analyst views highlight key support and resistance levels.

Currently, Doge price traded at $0.15668 after it recently retreated from a high of $0.17394, maintaining a consolidation but staying above key support levels.

Technical Analysis Highlights Key Support and Resistance Zones

Dogecoin is now trading above the 20-day SMA of $0.14757, which suggests an overall bullish trend despite recent consolidation.

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However, the price oscillates around the Bollinger Bands and is in bearish territory after testing the upper Bollinger Bands near the $0.17394 level, which is now an immediate resistance level. The lower Bollinger Bands at $0.12119 act as the second support level, while the 20-day SMA offers primary support during correction.

Recent sessions showed a 3.49% gain indicating buying pressure is still present as Dogecoin tries to rebound from the pullback. If the price can break above the $0.17394 resistance level that will signal further buying pressure.

However, if a bullish breakout does not occur, the price may consolidate in the middle band near the 20-day SMA.

Analyst Signals Potential Reversal for Dogecoin

In a tweet, Ali Martinez stated that the TD Sequential indicator has formed a buying signal “9” on the Dogecoin chart, a popular pattern used to identify trend reversals.

This signal is normally given when the selling pressure has dominated the market for a long time meaning that a reversal might be around the corner. Martinez pointed out that $0.141 could be a key level of support; if the price is above this level, the price may turn toward $0.162 with a resistance level.

Martinez also highlights the importance of $0.141 as the level to keep an eye on because a breakdown below it would negate the buy signal and could lead to a bearish continuation. With the TD Sequential buy signal in place, traders see this level as a make-or-break support.

If buying interest continues, the analyst’s target of $0.162 would align with recent resistance, offering a logical profit-taking point.

RSI Momentum Reflects Moderate Bullish Sentiment

At the time of writing, the relative strength index (RSI) for DOGE is 60.27, meaning the bulls are still active, though not extremely overbought, which usually happens when the RSI goes above 70. When the RSI is above 50, it points to a bullish signal that buyers are dominating the market although the RSI has pulled back from a high of 66.76. Bulls.

A further increase in RSI above the 66 level points to more buying pressure from bulls, while a drop below 50 may mean that bears are taking over the market.

Traders are looking forward to a situation where the RSI reading will rise in order to support the bullish move towards $0.162. However, a decline in RSI could suggest that the current uptrend is weakening, reinforcing the need to closely watch the support at $0.141.

For now, traders are closely watching Dogecoin’s response to these key levels, as a successful breakout above $0.17394 could mark the beginning of a stronger uptrend.