Dogecoin shows signs of both strength and weakness as mixed technical and fundamental factors influence its market trend. While short-term movements appear bullish, key market indicators suggest caution ahead.
DOGE Price Faces Resistance
Dogecoin is trading at around $0.157, near the lower boundary of a resistance zone between $0.157 and $0.1622. This price area has proven difficult to break, with DOGE struggling to hold above it after brief rallies. According to chart signals, the false breakout was driven by external market events, particularly Bitcoin's surge following political announcements.
Despite a temporary push to $0.163, DOGE quickly retraced, indicating weak follow-through by buyers. The resistance continues to limit any real price progress. Trading volume also fell by nearly 50% over 24 hours, confirming lower participation and reduced momentum in the current trend.
ETF Developments and Chart Signals
On April 9, 21Shares filed an S-1 form with the U.S. SEC for a Dogecoin ETF. This news has brought renewed interest as it introduces potential for regulated exposure. 21Shares also plans to launch a DOGE ETP in Europe with House of Doge. These moves may increase interest from institutional investors.
Chart analysts have identified a possible symmetrical triangle breakout pattern. Past breakouts from such patterns have led to rallies, sometimes supported by lower volumes. Meanwhile, bullish RSI divergence was noted by Trader Tardigrade, along with a mention of Wyckoff Accumulation formation.
Dogecoin Outlook and Risks
If Dogecoin closes below $0.13646, the price could drop to $0.1277 or even $0.1154. However, if DOGE holds its structure and breaks above $0.17, it may confirm a new upward trend.
Current movements of DOGE in the market show mixed signals. Interest around ETF developments could bring changes, but caution in conditions of low trading volume remains relevant.
