The recent performance of Dogecoin has mirrored trends seen across the altcoin market, particularly in relation to Bitcoin. The original meme coin has faced significant downturns, falling to levels not observed since early 2023. This decline places Dogecoin in a critical situation, where substantial movements are necessary to avert further losses, as the cryptocurrency struggles to maintain solid support.
Analysis from Bitguru on X highlighted that the current Dogecoin price trajectory hinges on a key level around $0.166. This threshold is pivotal, as it represents a battleground between bullish and bearish traders. With Dogecoin firmly entrenched in a downtrend, momentum and positivity have been in short supply, with sideways trading becoming the norm. This stagnation is worrying, especially in the absence of any strong catalysts that might propel the cryptocurrency back into a rally.
Recently, Dogecoin faced rejection at the $0.1823 mark, a significant resistance level for the asset. This rejection has handed control back to sellers, increasing pressure as the price approaches the critical $0.166 grip. This level is notably positioned above a crucial support point at $0.16, stressing the importance for bullish traders to not only reclaim this floor but to establish a firm hold on it.
Compounding these issues, Dogecoin has been forming a pattern of lower highs, indicative of weakening buyer strength while sellers gain the upper hand. Should this trend continue, the potential for further declines remains high, diminishing hopes for a recovery.
Despite attempts at a rebound over the weekend, Dogecoin’s fortunes were hindered by Bitcoin’s own struggles around the $95,000 threshold. The immediate objective for Dogecoin bulls is to sustainably reclaim the $0.166 level. Failure to do so could lead to a deeper correction, with the next support level likely resting around $0.15. This region may attract buying interest and could provide a potential springboard for a short-term rise, should the price decline further.
