Dogecoin Faces Volatility Spike Amid Token Unlock and Key Resistance Test

Dogecoin (DOGE) is showing signs of impending volatility, as both technical and fundamental indicators point to a potential major price move. Currently trading near $0.16 after recovering from the $0.14 support zone, DOGE is displaying resilience. However, the upcoming unlock of nearly 100 million DOGE tokens could introduce significant downside risk.

Historically, large token unlocks have led to increased selling pressure, and Dogecoin may follow this pattern. The expected surge in supply could lead to short-term dilution, prompting caution among investors. This fundamental shift comes just as DOGE approaches a critical resistance level at $0.17 — a threshold it has tested multiple times recently.

From a technical standpoint, Dogecoin is attempting to regain bullish momentum. A breakout above $0.17 could open the door for a rally toward the $0.21 resistance level. Recent price action shows moderate volume with a slight uptick in bullish trades, suggesting that buying interest has not disappeared. The hourly chart also recently formed a golden cross, a signal often associated with upward momentum.

Despite these bullish signs, the outlook remains mixed. DOGE is hovering near the 50 and 100 EMA lines, both acting as resistance, which could trigger a pullback. Meanwhile, the Relative Strength Index (RSI) remains in neutral territory, showing no signs of overbought or oversold conditions.

In summary, while Dogecoin holds potential for an upside breakout, the imminent token unlock and technical resistance zones pose a risk of retracement. Traders should watch closely for confirmation above $0.17 or signs of rejection that may lead to renewed selling pressure.