DOGE at a Crossroads: Will It Break Through Resistance or Face Rejection Again?
Dogecoin (DOGE) is once again nearing a critical resistance level, leaving traders and investors speculating on its next move. While whale inflows and positive funding rates initially hinted at a potential rally, newer metrics suggest caution. Despite some price gains in late June, the stagnant active address count raises questions about sustained momentum. This article delves into the key factors influencing DOGE's price action and what traders can expect in the coming days.
Dogecoin (DOGE) Price Nears Key Resistance Again: Rally Or Another Rejection?
Dogecoin's recent price action approaches a critical resistance level, leaving traders questioning whether the meme coin will break out or face another rejection. Whale inflows and positive funding rates initially suggested upward momentum, but newer metrics paint a more cautious picture.
Despite late June price gains, Dogecoin's active address count remains stagnant. The lack of growth in daily transacting wallets—a key indicator of retail demand—signals weak organic participation. Historical patterns show sustainable rallies typically coincide with spikes in address activity, which remains conspicuously absent this time.
The MVRV Z-Score hovering below zero indicates most Doge holders sit on unrealized losses, traditionally a precursor to rebounds. Yet the anticipated recovery has failed to materialize, leaving the market in limbo between undervaluation signals and lackluster network activity.
Political Tensions Impact DOGE as Musk Allies Push Influence
Tensions between the WHITE House and Elon Musk loyalists have escalated, with the Department of Government Efficiency (DOGE) at the center of a political struggle. Following Musk's departure from the federal agency, disagreements over policy and spending priorities have emerged between him and President Donald Trump.
A faction of Musk allies is actively maintaining his influence within DOGE, as reported by The Wall Street Journal. Internal meetings have reportedly included loyalty tests, forcing staff to choose sides between TRUMP and Musk, exacerbating conflicts within the already strained agency.
Steve Davis, Musk's longtime associate, remains a key conduit for communication between Musk and DOGE employees, despite no longer holding a formal position. Some officials speculate that Musk's allies may push for a revamped "DOGE 2.0," shifting focus from government job cuts to modernizing federal IT infrastructure.
Dogecoin Shows Bullish Technical Signals Amid Key Support Levels
Dogecoin appears poised for a potential breakout as technical indicators align favorably. The meme coin has held firm NEAR $0.17 on weekly charts, rebounding from critical Fibonacci and trendline support levels. This price action suggests growing bullish momentum.
The 200-week moving average continues to provide robust support, while DOGE maintains position above its ascending channel. A recent dip toward the 200 MA on the 15-minute chart may offer low-risk entry points, potentially setting the stage for a retest of the $0.16490 resistance level.
Analyst Thomas Anderson notes current rejection at the $0.16490 resistance, with price consolidating just below this threshold. However, the broader structure remains bullish, with DOGE holding above its ascending trendline on the 30-minute chart. The 200 MA serves as dynamic support, creating a foundation for potential upward movement.
