After a turbulent value motion over the weekend that noticed Dogecoin briefly dip beneath $0.15, the meme-inspired cryptocurrency is now again once more to testing an vital technical stage. Notably, DOGE is now revisiting the 100-week Easy Shifting Common (SMA), which has served as a robust assist line for greater than a yr on the weekly candlestick timeframe, elevating questions on what would possibly unfold subsequent for its value motion.
Dogecoin Revisits Acquainted Assist Line
Dogecoin’s latest prolonged value decline noticed it break beneath $0.15 very briefly prior to now 24 hours. Notably, Dogecoin slipped beneath $0.16 on Saturday for the primary time since April, extending a downtrend that’s seen its value fall about 36% prior to now 30 days. Over the weekend, DOGE’s value dropped to round $0.143 earlier than rebounding to roughly $0.153 behind heavy buying and selling quantity of over 5 instances the latest each day common.
Curiously, this downward value motion has seen DOGE now retesting a technical indicator that has had an vital hand in its value motion over the previous yr. This phenomenon was first famous on the social media platform X by crypto analyst Dealer Tardigrade.
The chart shared by the crypto analyst on X captures an vital sample. DOGE’s weekly candles have repeatedly bounced off the 100 SMA over the previous yr, which has made it a significant technical flooring for the meme coin. Every time Dogecoin’s value approached or dipped barely beneath this shifting common, it shortly recovered and went on uptrends.
Dogecoin’s transient plunge to round $0.143, its lowest level since early April, earlier than rebounding above $0.15, has now positioned curiosity with the 100 SMA, which may function a launchpad as soon as once more if bullish sentiment seeps in.
DOGE Worth Zones To Watch
Proper now, the vital factor is whether or not Dogecoin can preserve its footing above the $0.145 to $0.151 assist zone. The short rebound following the weekend’s drop beneath $0.15 exhibits that consumers are nonetheless stepping in at this stage. Nevertheless, any indicators of weak spot may invalidate the bullish outlook of a bounce off the 100 SMA.
On the upside, reclaiming the $0.153 to $0.16 resistance vary with quantity affirmation would lend credibility to the concept Dogecoin is prepared for an additional rally from the 100 SMA. If that occurs, value historical past exhibits Dogecoin may mirror earlier reactions off this shifting common and arrange a rebound to a resistance stage between $0.19 and $0.21. If the present retest results in one other profitable bounce, a projection of the newest bounce exhibits a transfer to at the least $0.3 might be subsequent.
On the time of writing, Dogecoin is buying and selling at $0.1547, down by 2% prior to now 24 hours.
Featured picture from Getty Photographs, chart from Tradingview.com
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