The cryptocurrency Dogs [DOGS] has reached the lower end of its established trading range, finding support at approximately $0.00095 and encountering resistance at $0.0011844. Traders are closely monitoring to observe if the price will rebound from the support level, potentially leading to a retest of the range’s peak.
As per insights shared by the crypto analyst Zen, “
DOGS has fallen as anticipated and rebounded to $0.0011844 – marking the current upper limit of its range, with the bottom support resting at $0.00095 where the price is situated presently.”
Zen further stressed that if DOGS manages to bounce back from this support level, there is a high likelihood of another test towards the range’s peak.
A breakthrough above this resistance could spark additional bullish momentum and challenge the prevailing bearish pressure that has constrained the price recently.
Crucial Technical Milestones and Bullish Breakout Objectives
The critical technical markers to observe encompass the $0.00104 region, marked by Zen as the daily bullish equilibrium (EQ) breaker. Another pivotal level is the lower breakout threshold positioned at $0.001023.
In the event that DOGS revisits these levels, traders might foresee a potential uptrend towards the $0.00121 target, representing a 2:1 risk-reward ratio.
Another crypto analyst, Mikybull Crypto, pointed out the formation of an inverse head and shoulders pattern in DOGS, indicating a bullish reversal indication.
This pattern involves three troughs, with the central one being the deepest, often followed by a breakout above the “neckline.”
Market participants are closely observing this pattern as it could hint at a shift in market sentiment towards a bullish breakout.
Elevating Competition from Memecoins
Despite the potential recovery signals in DOGS, the emergence of new meme coins such as CATI and HMSTR through Binance’s Launchpad might impact its momentum.
These fresh initiatives could diminish trading volumes and interest in DOGS as traders divert their attention towards the latest trending meme coin.
The market’s rotation towards these new launches could affect DOGS; hence, it is crucial for traders to monitor how the token responds to this increased competition.
Market Trends and Address Decline
As of September 16th, DOGS registered 115.53k active addresses and 12k new addresses, based on data from IntoTheBlock.
Despite these numbers, the last seven days witnessed a 77.40% decline in active addresses and a 77.63% drop in new addresses.
Moreover, the count of zero-balance addresses surged to 68.9k, indicating diminishing activity. This decrease in addresses could imply reduced user interaction, potentially affecting DOGS’ price movements in the short term.
Simultaneously, DOGS has experienced fluctuating trading volumes, totaling 25.7 billion DOGS, with a price of $0.0009605 at the current moment.
During the past week, the average trading volume stood at 24.03 billion DOGS, peaking at 43.31 billion on September 15th and hitting a low of 13.42 billion on September 14th.
This variance in trading volumes suggests lingering uncertainty among traders regarding DOGS’ future trajectory, awaiting a clear indication of either a breakthrough or prolonged consolidation.