Dogecoin Struggles to Break Resistance Amidst Bearish Trend

Dogecoin, the cryptocurrency that started as a joke, has been facing resistance in recent days as it attempts to recover from a recent dip. Despite its price channels forming support, the cryptocurrency has struggled to find its footing and reverse its prevailing bearish trend.

At the time of writing, Dogecoin was trading at $0.244, up by 2.12% in the last 12 hours. However, its latest attempt at recovery faced strong resistance near the $0.262-level, which aligned with the 0.236 Fibonacci retracement level. Above this, the next critical hurdle lay at $0.274, where the 0.382 Fibonacci level seemed to be positioned. A break beyond this range could see DOGE attempt to reclaim $0.284 – in alignment with the 50% Fibonacci retracement level.

On the downside, support formed around $0.238, preventing further declines for now. If DOGE fails to hold this level, the next key support would be at $0.220 – a psychological barrier that traders will be watching closely.

Dogecoin's price action seemed to be constrained within a descending trend channel, a structure that has provided strong resistance to bullish breakouts. The 50-day moving average at $0.271 has continued to act as a dynamic resistance, reinforcing the bearish bias. Additionally, the 200-day moving average of $0.348 remains significantly above the current price – a sign that a long-term bullish reversal may take time.

Finally, Dogecoin's Market Value to Realized Value (MVRV) ratio over the past 30 days revealed a reading of -11.69%. This suggested that the asset may still be undervalued compared to historical norms. While this could indicate a potential buying opportunity, it may also reflect the broader market's hesitation in pushing Dogecoin higher. If buying momentum does not increase, DOGE could continue its range-bound movement.

For Dogecoin to break out of its current downtrend, it needs to reclaim $0.274 as a key pivot zone. A sustained move above this level could open the door for a rally towards $0.30 and beyond.