Dogecoin prices stick to support and ignore the line of short resistance

Highlights

Dogecoin prices are operating below the resistance zone consisting of US$0.07596 to US$0.07652.

Bulls are still holding on to the support level of US$0.07437 to avoid further declines.

Despite poor price performance, trading volume continues to grow.

Once the support level falls, the next target will look at $0.07290.

If the resistance level of $0.07652 is exceeded, the bearish view will expire and the price is expected to move towards $0.07883.

The price of dogcoin is in a tight direction choice zone

The price of dogcoin is currently in a sideways consolidation trend, and the long and short sides are fighting fiercely for short-term control. Although the bulls have successfully held on to key support levels in the past few trading days, the bears have not given in and remain close to resistance levels.

This hesitant price movement suggests that the market is waiting to confirm the next move. In fact, trading volumes have been growing, but prices have not broken through the established support and resistance ranges. Despite the occasional short-term rebound, the overall situation remains severe and bearish momentum continues.

The bearish structure once again dominates the market

The latest technical analysis shows that at the hourly level, Dogecoin still shows a bearish signal. The price area of $0.07596 to $0.07652 is considered a strong supply area or fair price gap. In other words, there is strong selling sentiment around this level.

In fact, this resistance area has been rejected many times in the past few trading days. Whenever bulls try to break through this level, prices encounter greater selling pressure, and the current bearish structure remains unchanged.

According to analysis, traders need to wait for a bearish signal to be confirmed before establishing a new short position. Simply touching this resistance zone does not guarantee a reversal, and every failed attempt increases the possibility of a reversal. The report also pointed out that the only way to break bearish sentiment is for prices to decisively close above $0.07652. This will mean that bulls regain the upper hand and prices may move near the next target of $0.07883.

US$0.07437 support is crucial

As of the time of publication, the trading price of Dogecoin was US$0.07515, down approximately 1.2% in the past 24 hours. Despite recent price declines, buyers have been struggling to defend the support area between $0.07437 and $0.07450.

So far, every time prices fall below this zone, bulls have bought a large amount of Dogecoin, preventing further declines. However, the rebound was not strong, indicating that the power of the bulls is still relatively weak.

According to analysis, US$0.07437 is the first target for short positions. If sellers succeed in pushing prices below this support level, they are expected to fall further to the next level of $0.07290.

On the other hand, the analysis also suggests another scenario. If prices briefly fall below support and then rebound due to a liquidity sweep, bulls could push prices back above the $0.07596 resistance level.

Trading volume continues to grow

Despite unsatisfactory price performance, market participation has increased significantly. The 24-hour trading volume of Dogecoin has increased by approximately 32.38%, and is currently close to US$801 million. An increase in trading volume when prices fall usually indicates that traders are actively positioning long and short sides.

At the same time, the market value of Dogecoin is estimated at US$12.82 billion, and its fully diluted valuation is very close to this figure because most of the tokens are already in circulation. There are currently about 170.68 billion dog coins in circulation. Higher trading volumes suggest traders are still waiting for a choice in direction.

What should traders focus on next

The next trading session may be crucial in determining the short-term trend of Dogecoin. As long as prices move below $0.07652, sellers remain dominant and the bearish trend is expected to continue. Any fall below $0.07437 will intensify market expectations that cryptocurrencies will fall to the $0.07290 level.

On the other hand, any breakthrough above $0.07652 will weaken the strength of the bearish trend. When the market sees a strong bullish trend, buyers may target resistance at $0.07883.

Currently, the cryptocurrency is within a clear technical range. Traders may wait for a decisive breakthrough to get a clear direction for the next step for cryptocurrency.