The cryptocurrency Dogs [DOGS] recently tested its support level at approximately $0.00095, while facing resistance around $0.0011844.
Investors are keenly observing the market to see if Dogs will rebound from this support level, potentially leading to a retest of its recent high.
Analyzed by the crypto expert Zen, the current price situation for DOGS is strategically crucial.
“DOGS has retraced as anticipated and now hovers around $0.0011844 – its current range top, with a base at $0.00095.”
Moreover, Zen has indicated that a successful bounce from the support zone could spark another attempt to breach the resistance level, signaling a bullish phase to counter recent bearish trends.
Critical Levels and Breakout Targets
The critical levels to monitor include Zen’s identified breakout equilibrium at $0.00104 and the lower breakout threshold at $0.001023.
A successful revisit to these levels could propel DOGS towards the target of $0.00121, presenting a promising 2:1 risk-reward ratio.
Another crypto analyst, Mikybull Crypto, has observed a potential inverse head and shoulders formation in DOGS, typically indicative of a bullish trend reversal.
This pattern with three distinct troughs, commonly followed by a breakout beyond the pattern’s neckline, could lead to a positive momentum shift if confirmed.
Emerging Memecoin Competition
While Dogs shows signs of recovery, the emergence of new meme coins like CATI and HMSTR on Binance’s Launchpad poses a threat to its market momentum.
These new projects might divert trading activity and attention away from DOGS as investors explore opportunities in the newest meme coin offerings.
Traders must be vigilant about how DOGS responds to this increased competition driven by the market’s growing fascination with fresh launches.
Market Trends and Address Activity
Recent data from IntoTheBlock on September 16th revealed 115.53k active addresses and 12k new addresses for DOGS.
However, over the past week, the cryptocurrency saw a significant 77.40% decline in active addresses and a corresponding 77.63% decrease in new addresses.
Notably, the number of zero-balance addresses reached 68.9k, indicating diminishing user interactions, potentially impacting DOGS’ short-term price movements.
Meanwhile, DOGS has experienced fluctuating trading volumes, totaling 25.7 billion DOGS at a current price of $0.0009605.
Weekly trading volume averaged 24.03 billion DOGS, reaching highs of 43.31 billion on September 15th and lows of 13.42 billion on September 14th.
This volatility hints at traders’ uncertainty regarding DOGS’ future trajectory, awaiting a clear signal of a breakout or continued consolidation.