DogeCoin (DOGE)

Dogecoin Price Faces 20% Pullback as Rally Struggles to Break Above Key Resistance

Dogecoin (DOGE) has showcased remarkable strength in recent years, recovering from its bear market lows and challenging bearish pressure at every turn. Despite attempts from bears to stifle its rally, DOGE has struggled to maintain momentum above the key $0.1 mark for an extended period. However, following a recent surge, many analysts anticipated a new all-time high (ATH). Yet, current technical setups suggest that a 20% pullback could be on the horizon.

DOGE Price Following PEPE’s Footsteps

Dogecoin has been outpaced by a few competitors in the meme coin race. After the rise of Shiba Inu, Pepe (PEPE) has emerged as a strong contender, quickly climbing to become the third-largest meme coin by market capitalization. Pepe’s price action has displayed solid upward movement, mirroring Dogecoin’s past trends. Recent comparisons between DOGE and PEPE charts reveal that DOGE’s price pattern is closely following PEPE’s rally, hinting that a pullback might be imminent.

Source: X

PEPE’s rally saw the coin consolidate around its ATH before experiencing a significant 30% drop when it couldn’t maintain support levels. Similarly, DOGE’s price is now at a critical juncture, having reached local support. If bullish momentum fails to pick up, a 20% pullback could mirror PEPE’s price action, bringing the coin lower in the coming days.

What’s Next for Dogecoin?

The current trade setup shows that Dogecoin has fallen below its ascending trend line, which had previously acted as a reliable support. With the price failing to recover its lost levels, concerns about its future direction are growing. As the RSI indicates a bearish trend, DOGE is at risk of slipping below $0.3, with potential support between $0.29 and $0.309. If these levels don’t hold, a further drop toward $0.246 could occur, followed by a potential rebound or, in a worst-case scenario, a deeper dip to $0.2.

As the market continues to watch closely, Dogecoin’s next move will depend on whether it can regain support or if the bears will take control.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Grayscale Files for Dogecoin ETF: Coinbase Custody and BNY Mellon to Manage New Crypto Investment Product

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