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Dogecoin recently tested its crucial support level at $0.14 after a prolonged decline. A recent price increase has sparked optimism for a potential recovery above $0.20. While this is possible, several factors must align for DOGE to regain strength.

Following a significant support bounce, DOGE's price action suggests a temporary rally. The asset is approaching the $0.18 resistance level; breaking above this is crucial for sustained recovery. Continued buying pressure could push the price towards $0.20.

However, DOGE remains below key moving averages, and the overall trend is still bearish. A significant threat is the impending "death cross"—where the 50-day moving average crosses below the 200-day moving average. This bearish signal, if confirmed by sellers regaining control, could trigger further declines. DOGE/USDT Chart by TradingView">

Should the death cross occur, DOGE may struggle to maintain upward momentum and could fall back to $0.14 or lower.

Key Levels:

• Immediate Support: $0.14 – Holding above this level is vital to prevent further losses.
• Resistance Levels: $0.18 and $0.20 – A decisive break above $0.20 could initiate a strong bullish move.

Bearish Scenario: Failure to break above $0.18 could lead to a retest of support and potentially further price drops.

For Dogecoin to escape its downtrend and return to sustainable growth, it needs significantly increased buying pressure and participation in a broader cryptocurrency market recovery. Negative sentiment surrounding the meme coin further hinders its progress.

Currently, DOGE trading volume is insufficient for a substantial recovery. Without increased demand, short-term rallies are likely to be fleeting and fail to translate into significant gains. Read original article on U.Today