Dogecoin faces a crucial test at the $0.175 resistance level, with market participants closely monitoring whether the asset can break through or face another decline.
The cryptocurrency has repeatedly approached this price point but failed to maintain gains, reinforcing it as a strong resistance zone. As DOGE consolidates below this level, investors await a decisive move.
If Dogecoin successfully breaches the $0.175 resistance level, it could indicate a bullish continuation. Market observers point to the potential for DOGE to climb toward the $0.196-$0.20 range if buying pressure intensifies.
A confirmed breakout would likely attract more traders and trigger stop-loss orders from short sellers, further fueling upward momentum.
A similar perspective has been echoed by a widely followed technical analyst, Trader Tardigrade, on X, who noted that Dogecoin remains below resistance and faces two possible outcomes—either breaking through with momentum or retracing to its lower support at $0.143.
His track record in identifying key price levels has made his insights a focal point among traders watching DOGE’s next move.
Conversely, if the resistance holds, DOGE may face renewed selling pressure, leading to a retracement toward its lower support at $0.143. This scenario is supported by the recent price action, where multiple attempts to surpass $0.175 have been rejected.
Miner Sell-Off Amplifies Market Uncertainty
Adding to market volatility, Dogecoin miners have sold off 65 million DOGE in just 48 hours, increasing downward pressure. The large-scale liquidation raises concerns about overall network confidence, as miners offloading significant holdings often signal reduced profitability or shifting market conditions.
The cryptocurrency, currently trading near $0.17, has struggled to regain momentum since peaking in February.
Despite the ongoing sell-off, some investors remain optimistic about Dogecoin’s long-term prospects. Over the weekend, buyers acquired approximately 910 million DOGE, with an additional 140 million purchased on Monday. This accumulation suggests continued interest in the asset, even as the broader market experiences turbulence.
Dogecoin’s price movement has mirrored broader crypto trends, with Bitcoin’s recent downturn exacerbating market uncertainty. Bitcoin, which recently dropped below $85,000 from a high of $90,000, has historically influenced alternative cryptocurrencies, including DOGE.
Analysts point to Bitcoin’s decline and rising inflation concerns as factors contributing to Dogecoin’s struggle to sustain gains.
As Dogecoin grapples with resistance at $0.175, traders remain cautious about the next move. The combination of miner sell-offs, Bitcoin’s price fluctuations, and broader market sentiment will likely determine whether DOGE can regain momentum or face further declines.
