Published on May 9, 2025 – 16:00 GMT – 72 min read
Dogecoin (DOGE) has been making waves as it continues its rebound from recent price dips, but the bulls are now facing a critical test as strong resistance forms around the $0.205 mark. The question on every trader’s mind: Can DOGE break through this barrier, or will the momentum fade?
Dogecoin’s Recovery Meets Critical Resistance
According to crypto analyst Lingrid, a classic continuation pattern is unfolding for Dogecoin. The recent price action has seen DOGE rebounding from a significant ascending trendline and breaking out of a Falling Wedge pattern – a potential signal of continued upward momentum.
Currently, Dogecoin is retesting the breakout zone around $0.175, where the wedge resistance and ascending trendline converge. This area is pivotal, as a successful hold above this level could confirm the breakout and pave the way for further gains.
Lingrid’s analysis also highlights that traders are monitoring the $0.19 level as the next immediate target. This zone aligns with the top of the previous trading range and could serve as a springboard for DOGE to test the $0.2 – $0.21 resistance area. However, despite forming higher lows, Lingrid warns that the overhead resistance near $0.19 and $0.2 could slow the bullish momentum.
Trading Volume – A Key Indicator
As Dogecoin’s price approaches the wedge apex, trading volume will become a crucial factor. Increased volume could sustain the rally, while declining volume may signal weakening momentum. Traders should keep a close eye on this indicator as it could determine whether DOGE breaks through resistance or faces a pullback.
Bearish Scenario: Potential Decline If Support Fails
Despite the encouraging signs of a recovery, there are still bearish risks. If Dogecoin fails to maintain support at the $0.175 level, especially with a decisive candle close below this zone, the breakout could be invalidated. In that case, DOGE may experience a sharp decline toward the $0.15 level – a potential 25% drop from the current price of $0.2.
Lingrid emphasizes that a lack of buyer interest near the wedge apex, coupled with weakening volume, could further contribute to market indecision and a bearish reversal. Thus, traders are advised to keep a close watch on the $0.175 support
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