Dogecoin has recently tested its last support level at $0.14. However, a recent upswing has raised hopes for a potential recovery above $0.20.
Current State of Dogecoin
Following a significant support, DOGE's price action points to a brief relief rally. The asset is now closer to the $0.18 resistance level, which needs to be overcome for a long-term recovery.
Support and Resistance Levels
DOGE's immediate support level stands at $0.14. It is essential to stay above this level to stop additional declines. Resistance levels are at $0.18 and $0.20; a clear breakout above $0.20 might initiate a strong bullish push.
Prospects and Challenges
The current trading volume for DOGE is not optimal for a proper recovery. Without demand, short-term rallies fade quickly. Momentum is also hindered by the bearish trend sentiment and the impending 'death cross.'
To exit the downtrend and return to sustained growth, Dogecoin needs a stronger influx of buyers and alignment with the overall cryptocurrency market recovery.
