Dogecoin Faces Key $0.20 Resistance — What’s Next for Dogecoin Price?

Dogecoin Price – Dogecoin (DOGE) encountered a setback last week, failing to break above the critical $0.20 resistance level. Following this rejection, the memecoin slipped to a local low near $0.17, reflecting a cautious market mood. Meanwhile, Bitcoin (BTC) showed resilience, rallying from $105,600 to $108,400, marking a 2.72% gain as of the time of writing.

Macroeconomic Concerns and Geopolitical Tensions Cloud Market Outlook

Despite potential upside, the macroeconomic landscape remains uncertain, reminiscent of last week’s bleak outlook. Ongoing tensions in the Middle East add to the geopolitical risks, influencing investor sentiment and fueling cautious trading behavior. Against this backdrop, Dogecoin’s price action continues to exhibit bearish tendencies, especially for long-term holders.

Altcoins Poised for Recovery but Dogecoin Holds a Bearish Bias

A recent AMBCrypto report highlighted that approximately 70% of altcoins are showing a long bias in the perpetuals market, with large-cap assets seeing around 60% of traders leaning bullish. This suggests market participants are preparing for a potential rebound following last week’s liquidation cascade. However, Dogecoin traders may need to remain cautious.

Technical Indicators Signal Mixed Messages for Dogecoin

Crypto analyst Ali Martinez pointed out multiple buy signals on Dogecoin’s 12-hour chart using the TD Sequential indicator. Yet, the broader high-timeframe (HTF) bias remains bearish. Elevated selling pressure on the On-Balance Volume (OBV), coupled with bearish momentum in the Relative Strength Index (RSI) and an overall bearish structure, suggest breaking past the $0.20 resistance could be challenging.

Holder Behavior Indicates Distribution Phase

Analysis of Dogecoin holders aged six months or less reveals an ongoing distribution phase, supported by a consistent downward trend in the mean coin age over the past five weeks. This trend indicates tokens are moving out of holding addresses, likely being sold. Additionally, spikes in dormant circulation during the last month confirm increased on-chain activity.

Negative 180-Day MVRV Ratio Adds to Bearish Outlook

The 180-day MVRV ratio remains negative, reinforcing the view that Dogecoin is in a distribution phase. This metric often signals discouragement for investors, suggesting prices may face downward pressure despite short-term rallies.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.