Dogecoin, one of the most recognized cryptocurrencies, has experienced a significant drop in value in recent weeks. Currently at a price of $ 0.23, he now tests a significant level of support which could determine his future trajectory. The relative resistance index (RSI) is approaching surveillance conditions, signaling the possibility of a price resumption, but if this rebound is materialized depends on several key factors, including technical indicators and the feeling of the market.
Understand the recent drop in Dogecoin prices
In recent weeks, Dogecoin has dropped sharply from its previous heights, its current price oscillating almost $ 0.23. This level is significant because it aligns the mobile average (MA) of 200 days, which is often used as a critical support point. If this support is valid, Dogecoin could undergo a reversal, but if it cannot maintain this level, other losses could follow. The $ 0.23045 brand is crucial and traders follow it closely for signs of potential prices.
Historically, Dogecoin has shown resilience when it reaches similar support levels, bouncing when market conditions are favorable. However, without a strong purchase pressure, the cryptocurrency could face an additional momentum.
Technical indicators indicate a potential reversal
Looking at the technical graphics, one of the most revealing signs of a potential rebound is the current position of Dogecoin RSI, which is 33,32. A RSI reading below 30 generally indicates that an asset is occurred and could be due to a rebound. However, the general feeling of the market is still low and other drops could occur before any significant recovery took place. A change in feeling is essential for Dogecoin to know of its downward trend.
In addition to the RSI, Fibonacci’s retracement levels suggest that Dogecoin has already dropped below the key level of 0.618, located at $ 0.3,9485. This level is commonly considered an important point in the continuation of trends. The loss of this level has raised concerns among investors concerning the potential for additional losses. If the support at $ 0.23045 fails, the next defense line is $ 0.20, which had previously acted as a resistance during a gathering at the end of 2024.
The activity of the network down and its implications
Another indicator that deserves to be considered is the significant drop in addresses active on the Dogecoin network. The active addresses, which represent the number of unique users engaging with the network, have increased considerably from a maximum of 9.8 million in December to only 1.32 million. This sharp decline suggests that there is currently a reduced interest in Dogecoin, with fewer people who treat or hold the medal.
A decrease in network activity is generally associated with a slowdown in speculative trading and a drop in demand. However, in previous cases, such decreases in activity have often preceded prices rebounds, especially when long -term investors begin to accumulate parts at lower prices. If this model is valid, it could point out a potential purchase opportunity for those who seek to enter Dogecoin at a reduced price.
Key levels to look forward
For Dogecoin to recover and find the dynamics upwards, it must hold above the level of critical support of $ 0.23045 and pierce the mobile average (MA) from 50 days to 0.32,976 $. A push above the $ 0.36 brand would be a strong indicator of a reversal and the beginning of a new trend.
However, if Dogecoin does not maintain support at $ 0.23, the next significant price level to monitor will be the bar of $ 0.20. This level has already acted as a resistance and could serve as a next major support if other declines occur.
Conclusion
Dogecoin is at a crucial stage, with its main technical levels of tests that could dictate its future performance. While the RSI suggests that it can be occurred and due for a rebound, the broader feeling of the market and the activity of the network must improve for a sustained recovery to be. Merchants and investors should keep an attentive eye on these critical indicators in the coming days to assess whether Dogecoin will rebound or face additional pressure.
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