Dogecoin is testing a major support area - can DOGE surpass the $0.40 level?

After the recent market-wide sell-off, Dogecoin has faced significant pressure, experiencing a 20% decline from its local high. Despite the downturn, this popular meme coin still maintains a bullish structure, leaving investors optimistic about its potential recovery. However, current levels are crucial as Dogecoin tests key demand zones that could determine its next move. Leading analyst and trader BigCheds recently shared a technical analysis on X, emphasizing that DOGE is testing an important demand at $0.31 on the daily timeframe. This level has previously acted as a strong support area, and holding above it could pave the way for its recovery and continued uptrend. Conversely, failing to maintain this level could open the door for further decline. The market sentiment remains cautious after the overall cryptocurrency market decline, but the ability to maintain the current level of DOGE could restore investor confidence. All eyes are now focused on whether this meme coin can defend this important support level and pave the way for a new rally, or whether additional selling pressure will lead to a deeper correction. Dogecoin maintains its important support level as 2025 begins. The start of 2025 has a different tune for Dogecoin compared to the explosion at the end of 2024. Starting from the beginning of November, DOGE has undergone a strong price increase, rising by over 230% in less than three weeks. This dizzying increase has brought the meme coin to a significant level, sparking interest and optimism among investors. However, since reaching a local high, Dogecoin has entered a consolidation phase, testing key support levels. Currently, Dogecoin is trading around $0.31, an important daily demand level identified by top analyst BigCheds. In his recent technical analysis, BigCheds emphasizes the significance of this support zone, as it could determine the next major move for the cryptocurrency. If DOGE holds above $0.31, it will set the stage for a potential breakout to higher price levels, reigniting the price momentum seen at the end of 2024.

This consolidation phase is being closely watched by traders and investors, as the sustainability of Dogecoin's price structure depends on this level. A strong recovery from the $0.31 support level could trigger new buying pressure, pushing DOGE to new highs. Conversely, losing this important support could signal a deeper correction, testing lower levels before any recovery. When the broader market finds its footing, Dogecoin's performance at this crucial level could impact its trajectory in the coming weeks. Successfully defending the $0.31 level could mark the beginning of another significant price increase, solidifying DOGE's position as a top contender in the cryptocurrency space. DOGE Eyeing a Breakthrough Dogecoin is currently trading at $0.33, showing potential for recovery after holding above the crucial support level of $0.31. This support level has provided a stable foundation for DOGE following a recent market sell-off. However, this cryptocurrency still faces risks as long as it continues to trade below the $0.40 level, which could reignite the upward price momentum.

To regain control of the bull camp, the price must decisively reclaim $0.40. This will signal a change in sentiment and provide the necessary momentum to challenge the $0.43 milestone. Surpassing the $0.43 level is an important milestone for Dogecoin as it has the potential to trigger a significant price surge, attracting new interest from investors and traders. On the contrary, the inability to reclaim $0.40 in the near future makes DOGE even more vulnerable. Sustained trading below this level increases the risk of a deeper correction, potentially testing lower support levels. The next few days will be a crucial time for Dogecoin's trajectory, as broader market sentiment and the ability to regain key levels of DOGE will determine its direction. If the buying side successfully pushes the price above $0.43, this meme currency can quickly regain its growth momentum and consolidate its market-leading position in this cycle.