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Dogecoin has recovered by 12%, regaining a crucial price level following its most recent drop. Despite the fact that this action gives investors some hope, DOGE still has a long way to go before it can be regarded as returning to bullish trading. There is still a lot of resistance to the meme coin, and the first significant level to test is 25% higher, which is still not enough to confirm a strong trend reversal.
DOGE's recent recovery is an effort to make up ground lost after a protracted decline. But rather than being absolutely bullish, this move should be interpreted with cautious optimism. The market may be hesitant as evidenced by the lack of strong follow-through, but the bounce at a crucial support level indicates that buyers are still present.
To make matters more difficult, trading volume is still comparatively low, which suggests that DOGE's recent recovery might not be strong enough to overcome important resistance levels just yet. A clear breach of the main resistance zones that are still well above the current levels and consistent buying momentum are necessary for a real trend shift.
Alex DovbnyaDOGE needs to break through its next resistance level, which calls for a further 25% price increase, in order to validate a wider recovery. Even if it succeeds, DOGE will remain below its prior highs, indicating that further upward movement is necessary to reenter a bull market.
Despite the positive movement, it might not be wise to fully engage into Dogecoin. Another pullback is still possible if there is no sustained volume and strength. This rebound might just be a short-term relief rally, rather than the beginning of a long-term uptrend until Dogecoin returns to higher levels in a convincing manner.
Dan Burgin
Vladislav Sopov