Dogecoin Approaches Important Resistance Level – This Is Where It Is Headed Next

The current situation of Dogecoin (DOGE) is not very promising as the largest meme coin in the cryptocurrency sector is on the verge of testing a significant short term resistance level that could cause the price to fall to new lows in many months. Dogecoin (DOGE) recently has a price of about $0.176, up 20% from a low of about $0.14 last week. 6% of that increase occurred after the Fed's policy meeting on Wednesday, which seemed to spark a bit of optimism in the market. The US Federal Reserve (Fed) announced plans to reduce the pace of selling off its balance sheet, meaning liquidity will be withdrawn from the US financial system at a slower pace.

However, the latest economic forecast from the Fed is not very optimistic as the bank predicts high inflation, high unemployment rates, and lower GDP growth in the near future. That is unlikely to alleviate the growing fears in the market recently that the U.S. economy may be heading towards recession.

And such fears may mean that the rallies of risky assets, including Dogecoin, will continue to be sold off in the coming weeks and months. In fact, Dogecoin seems to be approaching a great entry point for those looking to short sell. DOGE is currently very close to the 21DMA moving average. Since it fell below this important short term moving average at the end of January, DOGE has continuously rejected testing this line again.

The DMA 21 line also coincides with the downward trend from the 2025 high. If Dogecoin rejects this resistance area, a swift sell-off back to recent lows could easily occur. What Could Be the Lowest Price for Dogecoin? The macroeconomic context is becoming increasingly unstable with rising recession risks, but no major stimulus measures from the Fed are set to be implemented, indicating that now is not a good time to invest in high-risk assets like Dogecoin. Indeed, this means that Dogecoin is likely to fall even more in the coming weeks and months. So what price can Dogecoin fall to? Yes, if the lowest level in March is just above $0.14, this will open the door for a rapid fall back to the lows of around $0.08 by mid-2024. And if the situation gets really bad, the price could fall back to the lowest level of 0.05 dollars in mid-2023.

Is this a good time to buy in when the price falls? Yes, this depends on the investor's profile. For those who want to hold through significant fluctuations for many years, Dogecoin under $0.10 could be a great option. Assuming that the final macro conditions improve and the Trump administration ultimately creates an economic boom in the United States, top cryptocurrencies are likely to perform very well in the long term. The Trump administration has particularly viewed the cryptocurrency industry as a sector they want to support for growth. It is very likely that, if macro conditions allow, Dogecoin could rise to a new all-time high and even potentially exceed $1.0 by the end of Trump's term. Therefore, although it may face a short term price fall, Dogecoin could be one of the best cryptocurrencies to accumulate for long-term holders in the coming months.