Dogecoin, the well-known cryptocurrency, finds itself at a crossroads, trying to maintain its position after losing the gains made by the end of 2023. Support and resistance will be key factors in determining its future trajectory.
Current Support and Potential Pressure
Currently, Dogecoin is holding at the 800-day Exponential Moving Average (EMA), a significant former accumulation zone in 2023. However, untapped liquidity below the current price could create downward pressure if support fails.
4-Hour Chart and Key Resistance
On the 4-hour chart, DOGE is testing the 50-day EMA as a key resistance. A rejection here could push the price back to the blue support zone. Indicators like MACD and RSI show waning positive momentum and market indecision.
Liquidation Levels and Market Sentiment
Liquidation levels indicate long positions outweigh shorts, creating potential for short-term growth with sufficient buying momentum. However, holding critical levels remains vital.
Dogecoin's near-term outlook hinges on its ability to hold critical support levels. The market remains uncertain, and scenario development will depend on Bitcoin's dynamics and other technical indicators.
