Dogecoin continues to face hurdles in its quest for recovery following a sharp price decline, while Elon Musk's new political movement may impact interest in the cryptocurrency market.
Resistance Levels for Dogecoin
Currently, Dogecoin faces strong resistance zones at $0.18, $0.21, and $0.36. On-chain data from Glassnode shows that approximately 13.4 billion DOGE were last moved at $0.18, forming the second-largest holder cluster after the $0.0739 support level. At $0.21, about 10.85 billion DOGE changed hands, indicating another potential sell zone.
Technical Analysis and Fibonacci Levels
Dogecoin reached a high of $0.486 in November 2024, before entering a prolonged downtrend. It is now trading around $0.174, just above the 0.786 Fibonacci retracement level. A breakout above this level could trigger a movement towards $0.22, aligning with the 0.618 retracement zone. If DOGE fails to hold above $0.16, it could revisit the $0.09 support zone.
Elon Musk's Political Movement and Market Impact
Elon Musk recently announced the formation of a new party, the America Party, following a poll where nearly two-thirds of 1.24 million voters supported the idea. He criticized the current political system as corrupt and inefficient, labeling it a 'one-party system'. This announcement raises concerns in Republican circles, as it is believed that the new party may dilute Republican support in the 2026 elections.
The situation with Dogecoin and Elon Musk's political activity highlights the connection between the cryptocurrency market and other realms, making it essential to monitor these developments for potential trajectory changes.
