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Dogecoin has been showing a continuous downward trend recently, consistently oscillating above $0.25 since late May. Over the past week, Dogecoin's price has mostly remained above $0.18, but failed to demonstrate significant upward momentum.
However, within the last 24 hours, the price briefly dropped below $0.18, touching the critical support level of $0.17 before rebounding. $0.17 is crucial for Dogecoin, representing the daily support within the downward channel that has constrained its price movement since December 2024.
Downward Channel Limits Price, but Breakthrough May Be Imminent
According to cryptocurrency analyst MMBTrader, Dogecoin's price has been restricted by a downward channel since the beginning of the year, with each attempt to move upward being suppressed by the channel's upper boundary, forming lower highs. However, he points out that this trend may be about to reverse. The chart shared by MMBTrader indicates that Dogecoin is once again challenging the resistance level above the channel, and a breakthrough could trigger a significant price increase.
To achieve a breakthrough, Dogecoin needs to maintain the $0.17 support level and strongly break through the recent resistance of $0.205. If it can further break $0.23, Dogecoin may escape the downward channel, with targets reaching $0.3 or even higher. The analyst's predicted path suggests that after breaking $0.205 and $0.23, Dogecoin might transform the $0.3 resistance level into a new support level.
Breakthrough Prospects and Current Challenges
If Dogecoin successfully breaks through the downward channel, it could release strong upward momentum. Analysts anticipate long-term bullish targets of $0.75 or even $1, provided the price can firmly stand above $0.40. However, Dogecoin's upward momentum currently appears weak.
At the time of writing, Dogecoin's price is $0.1808, down 1.4% in the past 24 hours, with trading volume plummeting 50% to approximately $720 million. The price recovery coupled with volume contraction indicates insufficient market buying interest.
Nevertheless, the $0.17 support level remains solid. As long as Dogecoin maintains this level, the possibility of breaking through the downward channel still exists. Future movement will depend on maintaining key support and breaking resistance levels, and investors should closely monitor price dynamics at $0.17 and $0.205.
