Dogecoin’s Struggle Continues: Can It Bounce Back or Face a Bigger Crash?

Dogecoin is currently navigating a critical juncture around the $0.206 mark, facing a tug-of-war between key resistance and support levels. The question remains: can Dogecoin muster a rebound, or is it destined for a further descent?

After retreating from the $0.26 resistance point last week, Dogecoin finds itself in a consolidation phase. A failure to generate increased trading volume could expose it to a potential breakdown from the descending channel formation that has been guiding its price movements.

Currently, Dogecoin is trading just above the $0.20 level, where horizontal support is proving crucial. However, repeated attempts to breach the $0.217-$0.220 resistance band have been unsuccessful, suggesting market indecision. This resistance zone presents a significant hurdle, and inability to overcome it could lead to further price declines.

The market sentiment surrounding Dogecoin appears to be leaning towards a bearish outlook. Signs of indecision are noticeable, especially on the 30-minute chart, where the price is battling the Volume Weighted Average Price (VWAP) strip between $0.205 and $0.207.

Market flow data reveals a negative outflow of $1.37 million from exchanges, contributing to a mildly bearish sentiment. While the On-Balance Volume (OBV) indicator remains at $64.5 billion, there's no indication of a substantial surge in buying volume that could reverse the current trend.

Without an increase in volume, the likelihood of a more significant price drop increases, leaving Dogecoin vulnerable to further downturns.

In the short term, Dogecoin is expected to trade within a narrow range of $0.203 to $0.213. A successful break above $0.213 could pave the way for higher targets, potentially reaching $0.226 or even $0.246, provided bullish momentum strengthens.

Conversely, if bears maintain control, a return to the $0.195 level could be imminent, signaling a possible continuation of the downward trend.

As the market prepares for potential shifts, traders will be closely monitoring volume and price action to determine whether Dogecoin can achieve a rebound or face a more substantial decline.