Dogecoin (DOGE), has recently found itself at a crucial crossroads. After experiencing a series of price fluctuations, the digital currency is now stuck between key support and resistance levels: $0.18 on the downside and $0.29 on the upside. As investors and traders closely monitor Dogecoin’s next move, the question remains—will DOGE break through the $0.29 resistance, or will it slide back toward lower levels?

At the time of writing, Dogecoin is priced at $0.1681 with a 24-hour trading volume of $844 million. The digital asset has shown a modest 3.24% price increase over the past week, but it’s currently down 0.43% in the last 24 hours. Despite the recent dip, market sentiment suggests that a potential rally toward $0.29 might still be within reach.

Key Indicators Point to Potential Breakout

While Dogecoin has faced significant corrections in recent weeks, technical analysts remain cautiously optimistic. The cryptocurrency has found temporary support around the $0.18 mark, a level that has shown resilience. The possibility of a price increase is tied to a couple of critical technical levels that traders are closely monitoring.

One of these levels is the 20-day Exponential Moving Average (EMA), which is acting as a support level for Dogecoin’s recent price action. If DOGE manages to stabilize around this moving average, it could set the stage for a breakout to the next key resistance point—$0.29.

According to Igor Bondarenko, a seasoned market analyst, if Dogecoin struggles to break above the EMA, a bearish scenario could unfold. In this case, the price may drop further to as low as $0.10, especially if momentum remains weak.

Bearish Trends: MACD and RSI Indicators

Despite the cautious optimism surrounding Dogecoin, some technical indicators suggest that the cryptocurrency is currently facing a bearish trend. The Moving Average Convergence Divergence (MACD) indicator, a popular tool for assessing momentum, is showing signs of weakness.

As of now, the MACD line (blue) is situated below the signal line (orange), a pattern that typically suggests a lack of upward price movement. The histogram, which represents the strength of the trend, remains mostly negative, indicating that sellers may still have the upper hand.

Additionally, the Relative Strength Index (RSI), a key measure of overbought or oversold conditions, is currently at 36.97, just below the neutral 50 mark. This suggests that DOGE is in the oversold region, which could mean more selling pressure if the RSI drops further. If the RSI continues to hover below 40, it could signal continued weakness in the market, potentially triggering further declines in price.

Whale Activity and Network Participation: A Glimmer of Hope?

Despite the bearish technical indicators, there’s another factor that could drive Dogecoin’s price in a positive direction: increased network activity. According to crypto analyst Ali Martinez, Dogecoin’s network has seen a significant uptick in active addresses. On March 12, there were around 150,000 active addresses, but by March 14, this number surged to over 280,000. This spike in network participation coincided with an increase in Dogecoin’s price, which rose from $0.16 to $0.26.

This surge in activity could be a sign of growing demand for Dogecoin, but the price retraced shortly afterward, indicating that the initial enthusiasm may have been short-lived. Large transactions also rose, with whales—large investors or institutional players—purchasing more than 110 million DOGE within a week. While these transactions briefly supported a bullish outlook, the subsequent price dip suggests that some of these purchases were motivated by profit-taking rather than long-term market support.

Support and Resistance: Key Levels to Watch

The price action of Dogecoin is currently dictated by a delicate balance between support and resistance. The $0.18 level has become a critical support zone. If Dogecoin falls below this level, it could signal a shift toward a bearish market, potentially leading to a further price decline. On the other hand, the $0.29 resistance level remains a crucial threshold. If Dogecoin manages to break above this level, it could fuel a fresh wave of bullish sentiment, pushing the price higher in the short term.

One important resistance level to note is $0.202, which DOGE briefly reached on March 6. If Dogecoin can break above this level, it may gain the momentum needed to test the $0.29 resistance. However, failure to do so could result in further consolidation or even a decline back to lower levels.

The Bottom Line: What’s Next for Dogecoin?

As the cryptocurrency market remains volatile, the next few days will likely determine whether Dogecoin can mount a successful breakout or whether it will fall to new lows. The $0.18 support and $0.29 resistance will be crucial levels to monitor. If Dogecoin manages to hold above the $0.18 support and break through $0.29, it could signal a potential bullish trend. However, failure to overcome these key levels may lead to further declines, with some analysts predicting that the price could eventually dip as low as $0.10.

For now, traders and investors should keep an eye on key technical indicators, whale activity, and overall market sentiment to gauge where Dogecoin’s price is headed next. The coming days will be critical for determining whether DOGE will break free from its current price range or succumb to bearish pressures. As always with cryptocurrencies, volatility is inevitable, and the future remains uncertain.