Dogecoin Defies Market Downturn, But Key Support Levels Face the Heat

Dogecoin, a popular dog-themed meme coin, has defied the broader cryptocurrency market downturn today, with its price rising by 0.39 percent.

Dogecoin price today hints at a potential short-term downside move following a failure at a crucial resistance level. Having retested the $0.115 resistance on Monday, the token experienced a pullback of 10%, breaching below the 50 SMA at $0.1057. This pullback created a support trendline connecting the recent lows, which buyers must now defend to prevent a more significant decline.

Despite the short-term downside pressure, there is still potential for a rebound if key support levels hold. In fact, the cryptocurrency’s ability to hold above the $0.10 mark will be a critical test of its strength and resilience in the face of market volatility.

On the other hand, on-chain metrics are painting a bearish picture for Dogecoin. According to data from IntoTheBlock, the token’s transaction volume has been declining, indicating a lack of interest and activity among investors. This could potentially lead to further price drops in the coming days or weeks.

Moreover, a large portion of the token’s supply, around 85%, is now in the money following the recent price increase. This could create selling pressure as investors who purchased the token at lower prices may be inclined to take profits.

Overall, while Dogecoin has shown some resilience during the recent market downturn, technical and on-chain indicators suggest that the token may face further price drops in the short term.

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