Dogecoin (DOGE) closed final week on a bullish teach after attempting out indispensable technical phases that will additionally outline its subsequent directional circulation. The weekly chart on Binance (DOGE/USDT) shows that DOGE is currently shopping and selling upright above the quite a bit of 0.786 Fibonacci retracement level at $0.167. This retracement is drawn from the all-time low at $0.0805 to the height of $0.4844.
Dogecoin Reversal Confirmed?
A well-known technical trend is the interaction with a prolonged-standing descending trendline, extending from the May maybe maybe maybe also merely 2021 all-time excessive. DOGE now no longer too prolonged within the past retested this trendline as toughen after breaking above it in November 2024.
Last week’s candle printed a Hammer-love formation, characterized by a miniature genuine physique arrive the tip of the differ and a enormously longer lower shadow. Whereas the candle additionally shows a modest upper wick, the dominance of the lower shadow signals that merchants absorbed aggressive promote strain below the trendline and pushed the price abet above the 0.786 Fibonacci level – a stable bullish charge.
On the alternative hand, this week will be as important as final week. A weekly discontinuance above $0.167 appears to be like to be compulsory to verify the momentum. In some other case, one other test of the multi-year trendline would possibly additionally change actual into a acquire-or-shatter moment for the Dogecoin designate.
Particularly, momentum indicators remain neutral to bearish. The weekly Relative Strength Index (RSI) closed around 39, reflecting subdued shopping energy and highlighting that DOGE remains to be operating below the neutral 50 label.
The Exponential Transferring Averages (EMAs) are offering layered resistance above the contemporary designate.
The 100-week EMA lies at $0.17284, positioned upright above DOGE’s contemporary differ, while the 50-week EMA is located at $0.21427. The 20-week EMA, the more immediate resistance all the procedure in which via old rallies, now sits at $0.24805. Pork up is bolstered at the 200-week EMA around $0.13621, a level that would likely wait on as a final line of defense must restful DOGE crash below the multi-year trendline.
Note circulation in contemporary weeks additionally exhibits DOGE breaking down from a bearish flag or channel formation, with the breakdown accelerating in direction of the confluence of the 0.786 Fibonacci level and the descending trendline retest. Without reference to this, the market spoke back with stable shopping hobby within the highlighted crimson toughen zone.
On-chain recordsdata additional contextualizes the contemporary designate circulation. Analytics agency Santiment reported via X these days that Dogecoin, love most meme money, has been carefully impacted all the procedure in which via the continuing two-month market-extensive retracement. On the alternative hand, Santiment identified a bullish divergence on the network facet.
The agency states: “Dogecoin, love most meme money, hold been hammered all the procedure in which via the 2-month crypto-extensive retrace. On the alternative hand, we recommend retaining an look on the rising level of wallets maintaining a minimum of 1M $DOGE, which has recovered all the procedure in which via the price dump. Active addresses are additionally at 4-month highs.”
Alongside side to this sentiment, crypto analyst Daan Crypto Trades commented via X: “DOGE equal to PEPE but has already retaken the Election level after sweeping it. I mediate these are key phases to shield up searching at on these forms of alts. A sweep & retake signals some short term support and these phases can offer a neat invalidation level afterwards.”
This aligns with the technical observation that DOGE’s contemporary designate circulation would possibly additionally snarl a sweep of liquidity below a key level, followed by a recovery above toughen — a conventional transient bullish reversal pattern in crypto markets.
