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Dogecoin (DOGE), the dog-themed cryptocurrency, has rebounded after a five-day decline. At the time of writing, DOGE is up 5% in the last 24 hours, trading at $0.17. This continues its recovery from yesterday's low of $0.1427. Wednesday's price reached highs of $0.169.

Several factors may have contributed to this upward movement. The broader cryptocurrency market is rebounding from a prolonged downturn, with Bitcoin and Ethereum showing gains. The recent market sell-off, driven by macroeconomic concerns, impacted cryptocurrencies alongside other risky assets. Bitcoin's recovery from a four-month low, as traders bought cryptocurrencies discounted by the sell-off, has positively influenced the market sentiment.

This renewed positive sentiment is benefiting Dogecoin, which could see its second consecutive day of gains if the current trend continues.

Dogecoin Price Analysis

While the 5% increase is positive, DOGE still faces resistance at key levels. Sustained momentum could push it towards the next resistance level around $0.21. A break above and close above $0.21 would signal easing selling pressure. Further gains could then target the 50-day Simple Moving Average (SMA) at $0.26, which could act as a significant resistance level.

Dogecoin fell below the $0.18 support level on March 9th, suggesting a resumption of the downtrend. However, if selling pressure returns, DOGE could retest lower support levels. Currently, downward-sloping moving averages and an RSI in negative territory suggest bearish dominance. A continuation of the downturn could see Dogecoin retest support at $0.14.

For now, Dogecoin's recovery offers renewed hope, but its sustainability depends on broader market conditions and continued investor interest. Read the original article on U.Today