Dogecoin [DOGE] is once again in the spotlight as it strives to confirm its breakout from a prolonged downward trend.
Analysts in the cryptocurrency space, including Rekt Capital on the X platform (formerly known as Twitter), have pointed out DOGE’s ongoing retest following the recent breakout, with the meme-based coin currently testing significant support levels.
A successful retest of these levels could potentially mark the beginning of a fresh upward trend for DOGE, leading to potential price appreciation in the near term.
Is DOGE able to sustain its critical support thresholds?
As of the latest update, DOGE is exchanging hands at $0.1047, indicating a minor decrease of 0.42% over the last 24 hours. The market’s attention is focused on the coin as its price lingers around crucial support levels subsequent to the breakout from the prolonged downward trend.
An analysis of the Bollinger Bands (BB) indicates that DOGE is currently trading within a relatively narrow range, with the 20-day Simple Moving Average (SMA) at $0.1060 posing as a short-term hurdle.
The Relative Strength Index (RSI) stands at 45, signaling a neutral momentum state. Failure to maintain the existing support around $0.10 could lead to further downside movement. Nonetheless, a successful retest might open the door for a renewed bullish trend.
What insights does on-chain data offer regarding DOGE’s potential?
On-chain activity presents an encouraging outlook for DOGE. Recent data reveals a 3.05% increase in large transactions, indicating heightened involvement from whales in the market.
Moreover, 4.17% of DOGE holders are presently in a profitable position, indicating positive investor sentiment.
Despite a minor bearish indication in net network growth (declining by 0.09%), the overall concentration and transaction details suggest a potentially favorable setup in the upcoming weeks.
Will DOGE establish a new long-term uptrend?
The broader perspective for DOGE largely depends on its ability to effectively retest and hold above the previous downward trend line. This pivotal retest could act as a catalyst for a significant price surge.
If DOGE manages to recapture the $0.1060 resistance level and sustain its upward trajectory, analysts anticipate a new upward trend that could drive the coin higher, potentially surpassing recent peaks.
In essence, the key factor revolves around the retest of the downward trend. A confirmed breakout for DOGE could lead to a robust upward movement. While the market maintains a cautious optimism, attention remains fixed on Dogecoin to observe if it can break out of its current range and kick off a sustainable upward trend.