Dogecoin At Make-Or-Break Point After Multi-Year Trendline Test

Dogecoin (Doge) closed last week with a bullish note after tested critical technical levels that could define his next directional move. The weekly chart on Binance (Doge/USDT) reveals that Doge is currently exchanged just above the significant level of retracement of fibonacci of 0.786 at $ 0.167. This retracement is taken from the minimum of all time to $ 0.0805 at the peak of $ 0.4844.

Dogecoin Reversion confirmed?

A remarkable technical development is the interaction with a long -standing decreasing trend line, which extends from the maximum of all times of May 2021

The candle of last week printed a training similar to a hammer, characterized by a small real body near the upper part of the range and a significantly longer shadow. While the candle also shows a modest higher wick, the domain of the signals of the lower shadow that the buyers absorbed an aggressive sales pressure below the trendy line and rejected the price above the level of fibonacci 0.786 – a strong bullish signal.

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However, this week could be as important as last week. A weekly closure greater than $ 0.167 seems essential to confirm the momentum. Otherwise, another test of the multi-year trend line could become a moment of make-or-break for the price of dogecoin.

In particular, the momentum indicators remain neutral to bearish. The weekly index of relative resistance (RSI) closed about 39, reflecting the submissive purchase force and highlighting that Doge is still operating below the neutral sign 50.

The medium of exponential mobile (Ema) are providing stratified resistance above the current price.
The 100 weeks EMA is located at $ 0,17284, positioned just above the current doge interval, while the 50 weeks EMA is at $ 0.21427. The 20 weeks, the most immediate resistance during previous rallies, is now located at $ 0.24805. The support is strengthened by 200 weeks of about $ 0,13621, a level that probably works from the last line of defense should crash below the multi -year trend line.

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The action of prices in recent weeks also shows the breaking of the Doge from a bearish flag or a formation of canals, with the breakage accelerating towards the confluence of the level of Fibonacci 0.786 and the test of the descending tendency. Despite this, the market responded with a strong interest in the purchase for the high -high support area highlighted.

The data on the chain further contextualize the recent action of prices. The Sanvent analysis company reported X today that Dogecoin, like most meme coins, was strongly hit during the market in progress at the market level for two months. However, Santiment underlined a bullish divergence on the side of the network.

The company says: “Dogecoin, like most meme coins, has been hammering during the 2 -month -old cryptographic portrait. However, we advise you to keep an eye on the growing level of wallets that holds at least 1 million of $ doge, which resumed during the price landfill. The active addresses are also at the maximum of 4 months.”

By adding to this feeling, the encryption analyst Daan Crypto Trade commented through X: “Doge similar to pepper but has already resumed the electoral level after sweeping it. I think these are key levels to continue looking at many of these alts. A Sweep & Retake reports a little short -term relief and these levels can offer a cleaning level.”

This aligns with the technical observation that the recent action of doge prices can represent a swept of liquidity below a key level, followed by a recovery above the support: a typical short -term upper reversal model in the cryptocurrency markets.

First floor image created with Dall.e, graphic designer by tradingview.com