Dogecoin’s recent attempt to regain lost ground has hit a significant snag as the price struggles to break above the key 4-hour straightforward moving average (SMA). This level of resistance proved to be a formidable barrier, with bear pressure consistently preventing any significant breakout.
Despite initial signs of a potential rebound, DOGE’s inability to breach this key threshold suggests that growth momentum remains feeble, putting the meme coin in a precarious position. The rejection at the 4-hour SMA highlights the growing dominance of sellers in the market and raises questions about whether buyers can regain control to push the price higher.
A decisive move above the 4-hour SMA could signal a return to positive sentiment, possibly paving the way for DOGE to target higher resistance levels. On the other hand, continued failure to overcome this obstacle could lead to increased selling pressure, pushing the price towards lower support zones.
Analysis of recent DOGE price changes
Analysis of Dogecoin’s recent price movements reveals a significant challenge for bulls. Despite an initial rebound, DOGE struggled to break resistance at the 4-hour SMA, which became a critical barrier.
This means that the growth dynamics has weakened and market sentiment may change. Failure to exceed this key level may suggest that further growth is unlikely without a consolidation phase or additional growth catalysts.
Additionally, the Relative Strength Index (RSI) provides additional confirmation of the current downtrend as the RSI line continues to remain below the 50% threshold. The RSI is commonly used to gauge market strength, and when it remains below 50%, it often signals that selling pressure is outweighing buying activity. This is consistent with DOGE’s recent price action as the asset struggles to break through the key resistance level at the 4-hour SMA.
The failure of DOGE’s RSI to rally above the 50% level indicates that bearish forces remain, limiting the meme coin’s chances of maintaining its rally. As long as the RSI remains below 50%, downward pressure could continue, making it tough for Dogecoin to break resistance and potentially pushing the price towards lower support levels.
A bullish reversal would require the RSI to rise above 50%, signaling a change in market sentiment. For now, the bearish tone indicated by the RSI highlights the challenges DOGE faces in maintaining its upward trajectory.
Critical support and resistance levels to watch
For DOGE, key support and resistance levels provide critical insight into future price movements. Dogecon price is currently testing the $0.3066 support level, which could provide a base if the bearish momentum continues. If DOGE falls below this support, it could head towards $0.2677, reflecting greater risk of loss.
On the other hand, if Dogecoin experiences a positive return and breaks above the 4-hour SMA, the immediate resistance to watch will be $0.3563. Moreover, a successful break of this level could pave the way for further upward movement, with the next target being the resistance zone at $0.4.