- Dogecoin’s breakout from the macro downtrend is being tested as it trades near key support levels.
- On-chain metrics indicate positive investor sentiment, with large trades up 3.05%, supporting potentially bullish momentum.
Dogecoin [DOGE] is back in the spotlight as it tries to solidify its breakout from a long-standing macroeconomic downtrend.
Crypto analyst Rekt Capital on the X platform (formerly Twitter). marked DOGE’s current retest after the outbreak, with the memecoin testing critical support levels.
A successful retest of this downtrend could signal the start of a new macro uptrend, potentially driving DOGE prices higher in the near future.
Source:
Can DOGE maintain its key support levels?
At the time of writing, DOGE is trading at $0.1047, showing a slight decline of 0.42% in the last 24 hours. However, the market is keeping a close eye on the price as the price is hovering near key support levels after breaking the macro downtrend.
The Bollinger Bands (BB) show that DOGE is trading within a relatively tight range, with a 20-day Simple Moving Average (SMA) of $0.1060 acting as short-term resistance.
The Relative Strength Index (RSI) is at 45, indicating neutral momentum. If DOGE fails to hold its current support around $0.10, further downside pressure could emerge. However, a successful retest would likely pave the way for renewed bullish momentum.
Source: TradingView
What does on-chain data reveal about DOGE’s potential?
On-chain activities paint an optimistic picture for DOGE. According to recent figures, large transactions are up 3.05%, indicating increased whale activity.
Additionally, 4.17% of DOGE holders are currently in the money, reflecting positive investor sentiment.
Despite a small bearish signal in net network growth (down 0.09%), the overall concentration and transaction data point to a potentially bullish situation in the coming weeks.
Source: IntoTheBlock
Will DOGE confirm a new macro uptrend?
The macro outlook for DOGE hinges on whether the company can successfully retest and stay above the former downtrend line. This crucial retest could serve as a catalyst for a larger price rally.
Read Dogecoins [DOGE] Price forecast 2024–2025
If DOGE can regain the $0.1060 resistance level and maintain its upward trajectory, analysts believe that a new macro uptrend could push the coin higher, potentially surpassing recent highs.
In short, the key lies in retesting the downtrend. If DOGE confirms this breakout, a strong upward move could follow. The market remains cautiously optimistic, but all eyes are on Dogecoin to see if it can break away from its current range and initiate a sustained rally.
