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After the recent market-wide selloff, Dogecoin has faced significant pressure, experiencing a 20% decline from its local highs. Despite the drop, the popular meme coin still holds a bullish structure, keeping investors optimistic about its potential for recovery. However, the current levels are critical, as Dogecoin is testing key demand zones that could determine its next move. Related Reading: Key Metrics Reveal Bitcoin STH Support Levels Around $89K–$86K – Is BTC At Risk? Top analyst and trader BigCheds recently shared a technical analysis on X, highlighting that DOGE is testing crucial demand at $0.31 on the daily time frame. This level has historically acted as a strong support zone, and holding above it could set the stage for a bounce and continuation of its bullish trend. Conversely, a failure to maintain this level might open the door to further downside. Market sentiment remains cautious following the broader crypto market’s decline, but DOGE’s ability to hold current levels could restore investor confidence. All eyes are now on whether the meme coin can defend this key support and potentially pave the way for a new rally or if additional selling pressure will lead to a deeper correction. Dogecoin Holds Pivotal Support as 2025 Begins The start of 2025 has taken a different tone for Dogecoin compared to the explosive end of 2024. Beginning in early November, DOGE experienced a massive price surge, gaining over 230% in less than three weeks. This meteoric rise saw the meme coin reach significant levels, reigniting interest and optimism among investors. However, since finding a local high, Dogecoin has entered a consolidation phase, testing critical levels of support. Currently, Dogecoin is trading around $0.31, a key daily demand level identified by top analyst BigCheds. In his recent technical analysis, BigCheds emphasizes the importance of this support zone, as it could determine the next major move for the cryptocurrency. If DOGE manages to hold above $0.31, it sets the stage for a potential breakout into higher prices, reigniting the bullish momentum seen in late 2024. This consolidation phase is being closely monitored by traders and investors, as Dogecoin’s ability to maintain its bullish structure depends on this level. A clean bounce from the $0.31 demand could trigger renewed buying pressure, propelling DOGE toward new highs. Conversely, losing this critical support might signal a deeper correction, testing lower levels before any recovery. Related Reading: Ethereum Downswing To $2,900 Could Be A ‘Buy-The-Dip Opportunity’ – Analyst Expects Bullish Surge As the broader market also finds its footing, Dogecoin’s performance at this pivotal level will likely influence its trajectory for the coming weeks. A successful defense of $0.31 could mark the beginning of another significant rally, solidifying DOGE’s position as a top contender in the cryptocurrency space. DOGE Eyes A Breakout Dogecoin is currently trading at $0.33, showing resilience after holding above the critical $0.31 demand level. This support has provided a foundation for DOGE to stabilize following the recent market selloff. However, the cryptocurrency remains at risk as long as it continues to trade below the $0.40 mark, a level that could reignite bullish momentum. For bulls to regain control, the price must reclaim $0.40 decisively. This would signal a shift in sentiment and provide the momentum needed to challenge the $0.43 mark. Breaking above $0.43 is a crucial milestone for Dogecoin, as it would likely trigger a significant rally into price discovery, attracting renewed interest from investors and traders. Related Reading: Solana Must Reclaim Momentum In The Coming Weeks – SOL/BTC Ratio At A Pivotal Point Conversely, failing to reclaim $0.40 in the near term keeps DOGE vulnerable to further downside. Prolonged trading below this level increases the risk of a deeper correction, potentially testing lower levels of demand. The next few days will be pivotal for Dogecoin’s trajectory, as the broader market sentiment and DOGE’s ability to reclaim key levels will determine its direction. If bulls succeed in pushing above $0.43, the meme coin could quickly gain momentum, solidifying its place as a market leader in this cycle. Featured image from Dall-E, chart from TradingView