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Dogecoin has rebounded by 12%, reclaiming a key price level after its recent decline. While this offers some encouragement to investors, DOGE still faces a significant uphill battle before a bullish trend can be confirmed. Substantial resistance remains, with the next major hurdle representing a 25% increase from current levels – insufficient to signal a robust reversal.

This recovery represents an attempt to recoup losses following a prolonged downturn. However, cautious optimism is warranted rather than outright bullishness. The lack of strong follow-through suggests market hesitancy, but the bounce from a crucial support level indicates persistent buyer interest. DOGE/USDT Chart by TradingView

Complicating matters, trading volume remains relatively low, suggesting DOGE's recent gains may be insufficient to overcome key resistance levels. A sustained price breach of significant resistance zones (currently well above the current price) coupled with consistent buying pressure is necessary for a genuine trend shift.

To validate a broader recovery, DOGE needs to surpass its next resistance level, requiring another 25% price appreciation. Even if successful, DOGE would still remain below previous highs, highlighting the need for further upward momentum to re-enter a bull market.

Despite the positive price action, full commitment to Dogecoin may be premature. A further pullback remains a possibility without sustained volume and strength. This rebound might prove to be a short-term relief rally, rather than the start of a sustained uptrend, until Dogecoin convincingly returns to higher price levels. Read original article on U.Today