DOGE tests key support by examining Dogecoin's price trend

• Dogecoin's breakout from the macro downtrend is being tested as it trades near key support levels.
• On-chain metrics indicated positive investor sentiment, with large trades up 3.05%, supporting possible bullish momentum.

Dogecoin [DOGE] It is back in the spotlight as it tries to solidify its breakout from a prolonged macro downtrend

Crypto Analyst Rekt Capital X is on the platform (formerly Twitter). highlight DOGE's current post-breakout retest, where Memecoin is testing the critical support level.

A successful retest of this downtrend could signal the start of a new macro-uptrend, potentially pushing DOGE prices higher in the near future.

Source: X

Can DOGE hold its original support level?

At press time, DOGE is trading at $0.1047, showing a slight decline of 0.42% in the last 24 hours. However, the market is watching closely as the price nears key support levels after a breakout from the macro downtrend.

Bollinger Bands (BB) reveal that DOGE is trading within a relatively tight range, with the 20-day Simple Moving Average (SMA) $0.1060 serving as short-term resistance.

The Relative Strength Index (RSI) sits at 45, indicating neutral momentum. If DOGE fails to hold its current support near $0.10, more downside is likely. However, a successful retest will likely pave the way for renewed bullish momentum.

Source: TradingView

What does on-chain data reveal about DOGE's potential?

On-chain activity paints an optimistic picture for DOGE. According to recent metrics, large transactions increased by 3.05%, indicating an increase in whale activity.

Additionally, 4.17% of DOGE holders are currently “in the money,” reflecting positive sentiment among investors.

Despite a minor bearish signal in net network growth (down 0.09%), aggregate concentration and transaction data suggest a likely bullish setup in the coming weeks.

Source: IntoTheBlock

Will DOGE confirm a new macro uptrend?

The macro outlook for DOGE depends on whether it can successfully retest and hold above the previous downtrend line. This important retest could act as a catalyst for a larger price rally.

Read Dogecoin [DOGE] Price Forecast 2024-2025

If DOGE can recover the $0.1060 resistance level and maintain its upward trajectory, analysts believe that a new macro uptrend could push the currency higher, possibly surpassing recent highs.

In conclusion, the key lies in retesting the downtrend. If the 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 free from its current range and start a sustained rally.