Dogecoin (DOGE) Price Prediction: Will DOGE Retest $0.16 Before a Potential Surge to $0.28?

Dogecoin (DOGE) is currently trading at $0.18, facing a critical juncture as it battles key support and resistance levels.

The meme-inspired cryptocurrency has encountered strong resistance at $0.20, preventing a breakout, while support at $0.16 remains a crucial defense line. With market volatility in play, investors are closely watching DOGE’s price action to determine its next move.

Can Dogecoin Hold the Line or Decline Further?

The ongoing market correction has put pressure on DOGE, with its price consolidating within a narrow range. The Bollinger Bands indicator suggests that $0.19 is a pivotal level, acting as both a resistance and a potential breakout point. If the price falls below $0.1781, it could trigger a decline toward the $0.16 zone, a key support area that traders should monitor closely.

Dogecoin (DOGE) price is currently holding above $0.17 while testing the lower Bollinger Band support. Source: TradingView

Crypto analyst Satori highlighted that DOGE is currently interacting with the middle Bollinger Band, which often serves as a support or resistance level. He pointed out that narrowing Bollinger Bands signal an upcoming volatility spike. If DOGE decisively breaks below its current support, it could open the door for further downside.

Technical Analysis Hints at a Bullish Reversal

Despite near-term bearish signals, DOGE’s overall technical picture suggests a strong recovery might be near. The coin just finished a falling wedge pattern, a classically bullish indicator. The pattern consists of downtrending trendlines that eventually meet, typically leading to a breakout.

Dogecoin (DOGE) has strongly reacted to this trend line, positioning itself for a potential upward reversal. Source: Ace1trades on TradingView

According to technical estimations, if DOGE manages to break above $0.195, it could be accompanied by a run-up to $0.21. A confirmed breakout above $0.21 would solidify bullish momentum, potentially pushing DOGE toward $0.28—a 60% surge from its recent levels. The Relative Strength Index (RSI) has climbed above 50, hinting at increasing bullish sentiment.

External Factors Could Influence DOGE’s Trajectory

Other than technicals, macroeconomic considerations could drive the future price of Dogecoin. Analysts suggest that the fate of the American economy and expected recession fears would indirectly benefit cryptocurrencies. Historically, economic downturns have led to monetary easing that has been beneficial for risk assets like DOGE.

In addition, Dogecoin’s popularity and dedicated following continue to serve as impelling forces. As investor confidence grows, price action and volume will determine if DOGE can sustain a bullish breakout or face renewed pressure on the downside.

Final Thoughts: Will DOGE Rise or Retest $0.16 First?

Dogecoin stands at a crossroads, having intense resistance around $0.19 and battling to hold significant support at $0.1861. A dip below that could see it retest $0.16 soon. The technical indicators are showing, though, that there could be a bullish breakout leading DOGE towards $0.28, as long as it can break past significant resistance.

Dogecoin (DOGE) was trading within the $0.18-$0.19 range at press time. Source: Brave New Coin

For now, traders and investors must watch technical indicators and sentiment closely. A burst of buying volume or a break above $0.21 could be the beginning of Dogecoin’s next huge run.