Dogecoin 
$0.20486 (DOGE) has reached a critical support level, leaving many wondering if it will rebound strongly from this point. Following a significant decline in recent weeks, the memecoin is now trading at decisive technical levels. Will DOGE experience a bullish movement from here, or will it face a deeper correction? Let’s take a closer look.
Dogecoin Analysis: What Do Technical Indicators Suggest?
Currently, Dogecoin is attempting to hold onto the support at the 200-day moving average (MA) of $0.23045. This level has previously marked significant recovery zones for DOGE.
However, if this support level is lost, a more severe downturn could occur. Fibonacci retracement levels indicate that DOGE has fallen below the 0.618 Fibonacci level at $0.39485, typically considered a signal for trend continuation.
Currently, DOGE’s next significant support lies at $0.23045, which could act as a critical safety net for traders. For a bullish scenario to materialize, DOGE must maintain its position above this level and reclaim the 50-day moving average at $0.32976.
Technical Indicators and Network Activity in Dogecoin Price Commentary
The Relative Strength Index (RSI) for Dogecoin is currently at 33.32, which indicates that DOGE is nearing the oversold territory. Generally, an RSI below 30 suggests a potential price recovery; however, if market sentiment remains weak, this rebound could be delayed.
Moreover, there has been a notable decline in the number of active wallet addresses on the network. Active wallet counts have dropped from 9.8 million in December to just 1.32 million now, indicating reduced network activity and waning investor interest. Past similar situations have, however, triggered recoveries as long-term investors accumulated DOGE at lower prices.
Overall, traders should closely monitor whether DOGE can maintain its position at the $0.23045 level. If this level is lost, the next key support is around $0.20. It is essential to pay attention to fundamental technical indicators and network activity before making short-term moves.
