Dogecoin Tests Key Support at $0.17, Traders Optimistic

Dogecoin is currently testing key support levels, with its price hovering around $0.17. This level has been identified as crucial for the cryptocurrency's near-term price action. The Long/Short Ratio for Dogecoin has reached a one-week high, indicating a renewed sense of optimism among traders. The next support levels to watch are $0.172, $0.168, and the critical $0.165 area. A break below $0.165 could potentially send the price toward $0.162 or even $0.155. Conversely, if Dogecoin manages to hold above $0.17, it could see a surge toward $0.20.

Analysts have highlighted the $0.16–$0.18 range as pivotal for Dogecoin's price movement. A breakout above $0.17 could trigger a significant upward momentum, while a failure to hold this level might result in a deeper correction to $0.12, a key level from March-May 2024. Dogecoin has been consolidating between the $0.15 support level and the $0.17 resistance level for several days, with the current price at $0.16. This narrow range suggests that a breakout in either direction could be imminent. The cryptocurrency has also found support from accumulated volume at $0.169, which may present a buying opportunity as an upward reaction can be expected when this support holds.

Additionally, Dogecoin recently surged past $0.17 following the Federal Reserve's latest meeting, sparking optimism among traders. Analysts project a long-term upside if the price surpasses the $0.185 resistance level, which could trigger a 157% rally. However, traders should remain cautious and monitor these key levels closely, as the cryptocurrency market is known for its volatility and unpredictability.

Looking at the macrostructure from a weekly perspective, Dogecoin is trading within a long-term ascending channel. Based on Fibonacci extensions and trendline alignment, the asset held just above crucial diagonal support near the $0.17 region, a press time. If DOGE sustains this channel and volume picks up, the next resistance zones lie between $0.22 and $0.23, aligned with the 2.618 and 3.618 Fib extension levels. A breach of these levels could open up a path toward $0.30 and beyond.

On the flip side, any failure to hold $0.16 could expose DOGE to a retest of $0.15, marked by the 0.786 Fib retracement on the 12-hour chart. At the time of writing, the 50 EMA (yellow line) sat at $0.182, acting as near-term resistance. From a momentum standpoint, DOGE’s RSI hovered around 50, reflecting a neutral setup. However, the steady sideways price action around $0.175 is accompanied by stable volume, often a prelude to a volatility expansion.

Moreover, the narrowing Bollinger Bands and flat-lining MACD suggested that Dogecoin could coil up for a larger move in the coming days, especially as traders take cues from rising long positions. Dogecoin’s rising Long/Short Ratio shows increasing bullish sentiment among traders. As long as the price holds above key support levels and avoids a sharp correction, DOGE could test higher resistance levels in the short term. However, with memecoin volatility still in play, traders should monitor sentiment and volume closely for confirmation.