Dogecoin Price Outlook: Can $DOGE Hold Above $0.14?

Dogecoin ( DOGE ) is struggling at a large resistance level, with the risk of a significant sell-off in the coming weeks. The meme coin is currently trading around $0.176, up 20% from last week's low of $0.14. The market surged shortly after the recent policy update from the Federal Reserve, in which the Fed announced a slower reduction of its balance sheet. However, weak economic forecasts, including high inflation, unemployment, and lower GDP growth, are putting pressure on investor sentiment. Dogecoin approaches the main resistance level DOGE is currently close to testing the 21-day moving average (21DMA), an important resistance level. Since breaking below this level in January 2025, Dogecoin has been unable to surpass it. If DOGE is rejected at this resistance level, the price could drop sharply to the recent low of $0.14. What level can the price of Dogecoin decrease to? The market situation indicates that risky assets like Dogecoin may face difficulties in the near future. If DOGE falls below $0.14, it could quickly drop to a low of nearly $0.08 by mid-2024. If selling pressure increases, DOGE could return to the 2023 low of around $0.05. Is this a buying opportunity? For long-term investors, buying Dogecoin under $0.10 could be a smart move. If market conditions improve and cryptocurrency adoption increases, DOGE has the potential to reach a new all-time high. The Trump administration has expressed interest in supporting cryptocurrency innovation, which could be a price-driving factor for Dogecoin in the coming years. Some analysts predict that DOGE could reach $1.00 by the end of Trump's term if conditions are favorable. Final thoughts Dogecoin is at a critical point. Breaking through the resistance level could trigger a price surge, while failing to do so could lead to another price drop. Investors should closely monitor price fluctuations in the coming days.