Examining Dogecoin’s price trend as DOGE tests key support

• Dogecoin’s breakout from its macro downtrend is being tested as it trades near key support levels.  
• On-chain metrics signal positive investor sentiment, with large transactions up 3.05%, supporting potential bullish momentum.  

Dogecoin [DOGE] is back in the spotlight as it attempts to solidify its breakout from a long-standing macro downtrend. 

Crypto analyst Rekt Capital on the X platform (formerly Twitter) has highlighted DOGE’s current post-breakout retest, where the memecoin is testing critical support levels. 

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

Source: X

Can DOGE hold its key support levels?

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

The Bollinger Bands (BB) reveal that DOGE is trading within a relatively tight range, with a 20-day Simple Moving Average (SMA) of $0.1060 acting 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, further downside could occur. However, a successful retest would 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 have risen by 3.05%, indicating increased 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 by 0.09%), the overall concentration and transaction data suggest a potentially bullish setup in the coming weeks.

Source: IntoTheBlock

 Will DOGE confirm a new macro uptrend?

The macro outlook for DOGE hinges on whether it can successfully retest and hold above the former downtrend line. This crucial retest could serve as the catalyst for a larger price rally.

Read Dogecoin’s [DOGE] Price Prediction 2024–2025

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

Conclusively, the key lies in the retest of the downtrend. If 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 initiate a sustained rally.