Dogecoin Holds Strong Above Key Support: Can It Push Higher?

Dogecoin Maintains Momentum Above Critical Support

Dogecoin's price has exhibited resilience, staying above the Volume-Weighted Average Price (VWAP) from its previous cycle high. If support holds, it could potentially ascend towards the $0.30 resistance.

Crypto analyst Cantonese_Cat (@cantonmeow) observed the weekly chart, noting that DOGE is currently trading at $0.2589, representing a 3.98% increase. The VWAP from Dogecoin's 2021 all-time high has emerged as a robust support level, indicating historical price patterns are influencing its current behavior.

Examining the chart reveals that Dogecoin briefly dipped below the VWAP but swiftly reclaimed it, demonstrating its significance as a dynamic support level. Maintaining this support could be a positive indicator, suggesting a possible continuation of the prevailing uptrend. With sustained support at this level, traders could anticipate further price appreciation, with DOGE targeting the $0.30 resistance zone shortly.

Price Action Hints at Accumulation near Key Levels

Historically, the VWAP from previous cycle highs has acted as a magnet for price consolidation, often leading to substantial upward movements when broken out. The current chart structure of DOGE suggests accumulation, as price action remains well-supported despite the recent pullback. If DOGE sustains its strength above this level, it could confirm a retest and resumption of its bullish trajectory.

However, a decisive break below VWAP could expose Dogecoin to further downside risks, with potential support near $0.20 serving as the next safety net. Traders will closely monitor whether buying pressure can sustain DOGE's position above VWAP, as failure to hold could result in increased volatility.

Bulls and Bears Vie for Control

With Dogecoin reclaiming the VWAP from its last cycle high, traders are divided on its ability to maintain momentum. If buying interest persists, DOGE could challenge the $0.30 resistance, a level that has historically triggered strong reactions. Conversely, if sellers prevail, a drop below VWAP could shift sentiment in favor of the bears, bringing lower support levels into focus.

Presently, DOGE's ability to remain above VWAP is a critical battleground, and traders should monitor volume inflows for confirmation of strength. If demand continues to rise, Dogecoin may be preparing for a new rally. However, if weakness surfaces, a more significant correction could be looming.

Tags:
Altcoin, Crypto market, Cryptocurrency, Dogecoin