 ▲ Dogecoin (DOGE) |
Dogecoin (DOGE) is showing signs of attempting to break out of its downtrend as it approaches the psychological resistance level of $0.10. However, due to insufficient trading volume, the sustainability of a full rebound remains uncertain.
According to crypto media outlet U.Today on Feb. 20 (local time), Dogecoin is attempting a recovery after a prolonged downtrend on the daily chart and is trading just below the $0.10 mark. The current price action sits at the edge of this psychologically significant level, making it a key market question whether DOGE can reclaim and stabilize above $0.10.
From a technical perspective, Dogecoin is currently trading in the upper $0.09 range, meaning the move required to retest $0.10 is relatively small. However, merely approaching a resistance level does not guarantee a breakout. The recent rebound appears more like a relief rally following a sharp decline, and it lacks the surge in trading volume necessary to confirm meaningful accumulation.
Moving average indicators also support a cautious outlook. The long-term 200-day and 26-day exponential moving averages remain significantly higher than the short-term averages, highlighting persistent macro resistance. For Dogecoin to secure genuine bullish momentum, it must break through the key resistance zone between $0.105 and $0.11 and establish it as new support.
On the downside, support levels are located near the recent local low of $0.09 and slightly lower around $0.085. If Dogecoin fails to defend this range, the current recovery scenario would lose credibility, increasing the risk of renewed selling pressure. Bulls must hold the $0.09 level while waiting for trading volume to accompany any upward move.
Dogecoin’s trajectory ultimately depends on whether it can break above the psychological ceiling of $0.10 and build a new support base. The current stagnation in trading volume and pressure from long-term moving averages suggest that bears still maintain control of the market. Investors should closely monitor whether DOGE can reclaim $0.10 and watch for volume changes around resistance levels when shaping their strategies.
Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses resulting from decisions based on it. The content should be interpreted solely for informational purposes.