The crypto market saw some profit-taking after a stellar week, with major coins, including Dogecoin (CRYPTO: DOGE), plunging by more than 7% on Friday. Bitcoin’s (CRYPTO: BTC) price saw a sharp drop from a high of $111,200 to just over $107,000 on Friday as investors digested macroeconomic concerns.

Dogecoin mirrored Bitcoin’s price action, reaching a high of $0.254 on Friday following three days of increases before plunging to a low of $0.223.

The meme coin, which is widely followed by retail traders, saw some stellar gains earlier in May, especially after reports that Elon Musk is planning to add a Dogecoin payment option for Tesla (NASDAQ:TSLA) products in the U.S. later this year.

According to Glassnode, while speculative appetite is surprisingly subdued among the top 10 coins, the Dogecoin funding rate is slightly above neutral. A sustained positive or negative funding rate can be a signal of excessive bullish or bearish speculation.

Dogecoin Price Prediction: What’s Next?

At the time of writing, Dogecoin was down 2.74% in the last 24 hours to $0.2278, but up 7.23% weekly.

Dogecoin is seen consolidating between $0.21 and $0.259 following a huge rise earlier in May. The daily RSI is also seen to be well above the 50 midpoint, presenting a slight edge to the bulls.

This optimistic view will be invalidated if the Dogecoin price turns down and breaks below $0.21. That suggests a likely range-bound action between $0.14 and $0.26.

As stated, the $0.21 level remains an important support to keep in mind. If Dogecoin manages to stay above this level, the chances of it breaking above $0.26 become higher. If that happens, Dogecoin might continue to rally further towards $0.35. There is an immediate resistance at $0.29, which is likely to be encountered by the bulls.