- DOGE tests key Fibonacci support after failing to hold above resistance
- Bollinger Bands suggest increased volatility, with a possible breakout looming
- A crucial support zone must hold, or Dogecoin could see deeper losses
Dogecoin has taken a hit, with price action showing a clear downward trend after failing to maintain its previous highs. The sharp drop comes after DOGE attempted to break above resistance but was met with heavy selling pressure, sending it back down toward key support zones.
Based on the CoinGecko chart, DOGE is now sitting near a potential reversal point, which could determine whether it bounces or continues its descent. This level is often a battleground between buyers and sellers, making it a critical area to watch. If Dogecoin holds steady and finds support here, it could set up for a recovery move. But if it breaks lower, we could see another leg down.
Bollinger Bands Show Signs of Upcoming Volatility
One major indicator flashing signals right now is the Bollinger Bands, which measure price volatility. At the moment, the bands are starting to widen, which means DOGE could be gearing up for a strong move in either direction.
When Bollinger Bands tighten, it often signals that a big breakout is coming. Right now, with DOGE near support, traders should be cautious—if the price pushes back above the middle band, we could see a relief rally. But if it drops below the lower band, that could confirm more downside pressure ahead.
This setup suggests that the next major price movement could be around the corner, making it an important time for traders to watch for breakout signals.
Key Levels That Could Decide DOGE’s Next Move
For now, DOGE is hovering around a crucial support level, and how it reacts here will set the tone for its next move. If it holds above $0.19, we could see a push back toward $0.21-$0.22, an area that previously acted as resistance.
On the flip side, if Dogecoin breaks below support, the next major level to watch is around $0.18. A drop below that could trigger panic selling, pushing the price even lower.
Dogecoin, originally created in 2013 by Billy Markus and Jackson Palmer, started as a joke but quickly grew into one of the most widely recognized cryptocurrencies. It remains a favorite for retail investors, especially with backing from high-profile figures like Elon Musk.
Right now, Dogecoin is at a turning point—if support holds, we could see a short-term bounce. But if it fails, the meme coin might be heading for an even steeper drop.
