- Dogecoin holds near $0.23045, a key support level that could trigger a rebound.
- The RSI signals oversold conditions, suggesting potential recovery if buying pressure increases.
- Active addresses decline sharply, but historical trends hint at a possible price reversal.
Dogecoin—DOGE, is at a critical support level, leaving traders guessing about the next move. The price has struggled for weeks, testing levels that could decide the next trend. A strong rebound could spark optimism, but failure to hold support may lead to more losses. Traders are watching key technical indicators to predict what happens next. Will buyers step in, or does more downside lie ahead?
Dogecoin’s Support Level Faces Pressure
The price of DOGE has dropped significantly, now trading around $0.25299. The 200-day moving average at $0.23045 acts as a crucial support level. In past market cycles, this zone has triggered strong recoveries when buying pressure increased. A break below this level could bring another wave of selling. Fibonacci retracement levels show a drop below the 0.618 level at $0.39485, signaling a continued downtrend. If buyers hold the line at $0.23045, the price could rebound toward the 50-day moving average at $0.32976. A move above $0.36 would confirm a bullish shift.
Market Sentiment and Network Activity
The Relative Strength Index sits at 33.32, close to oversold conditions. When RSI falls below 30, assets often see a rebound as traders buy at discounts. However, weak market sentiment could extend the downtrend. On-chain data shows a sharp drop in active addresses, falling from 9.8 million in December to 1.32 million.
Fewer active addresses suggest lower interest in trading. However, past trends show that reduced network activity sometimes signals a price recovery. If long-term holders start accumulating, Dogecoin’s momentum could shift upward.
For now, a price breakout above $0.36 would boost confidence among traders. If support at $0.23045 fails, the next key level sits at $0.20. The next few days will reveal whether Dogecoin holds support or slides further down.
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