Dogecoin at Crucial Technical Crossroads
Dogecoin (DOGE) has reached a decisive moment as it tests a critical multi-year trendline, with the $0.167 price level emerging as a key battleground for bulls and bears. The popular meme coin closed last week with a potentially bullish hammer formation, suggesting strong buyer interest at current levels.
Technical Analysis Shows Mixed Signals
The weekly chart reveals DOGE trading just above the significant 0.786 Fibonacci retracement level at $0.167, drawn from the all-time low of $0.0805 to the peak of $0.4844. This level coincides with a long-standing descending trendline dating back to May 2021, creating a crucial support confluence.
Key technical levels to watch:
- Immediate resistance: 100-week EMA at $0.17284
- Secondary resistance: 50-week EMA at $0.21427
- Critical support: 200-week EMA at $0.13621
On-Chain Metrics Signal Potential Reversal
Despite the recent market-wide retracement, on-chain data from Santiment reveals encouraging signs. The number of wallets holding at least 1M DOGE has increased during the price correction, while active addresses have reached 4-month highs – potentially signaling accumulation at lower levels.
Market Implications
The current price action aligns with historical patterns that preceded significant rallies. A weekly close above $0.167 could trigger a broader recovery, while a failure to hold this level might lead to a retest of lower support zones.
Traders should monitor the weekly close and volume patterns closely, as they could provide early signals of the next major move in DOGE price action.