Dogecoin Faces Critical Support Test as Market Dominance Declines

Dogecoin (DOGE) continues to decline, attracting the attention of both observers and traders. With important technical levels in motion, the market is waiting for a reversal signal, which could be a decrease or maintenance. Historical models and expectations in the market A recent tweet on X by Cas Abbé (@cas_abbe) referenced the price trend of Dogecoin and compared it to the trends in the third quarter of 2024. In Abbé's view, DOGE has dropped sharply, stabilized for a few weeks, and then surged exponentially, increasing by 300% in 4-6 weeks.

Abbé believes that such a chain can repeat and the increase can occur soon. However, the market direction is not guaranteed and price movements may depend on technical levels in the future and market sentiment, according to analysts. The activity of whales shows the confidence of DOGE. A recent post on Twitter by X from Ali (@ali_charts) includes a report on significant whale activity, stating that the whale has taken advantage of the current discount to buy 750 million Dogecoin.

A high-value buying spree could indicate high confidence in the market, especially as DOGE prices plummet. This activity has generated hope, although overall market confidence is being maintained as the downward trend continues. Technical analysis on DOGE price action The Dogecoin price is testing the lower edge of the descending channel, a level that could act as a future source of support. However, the price has dropped below the significant horizontal support level of $0.30, and concerns about increasing price declines are mounting. The next significant support level is $0.125, a level that has been a significant price action in DOGE in the past.

The resistance level is $0.30 and that level is no longer supported but in a resistance position at the current time. Any short-term price reversal will depend on the change in these important levels. In the case of DOGE still at the current support level, buyers can choose to counterattack towards $0.25–$0.30. RSI and market trends With a relative strength index (RSI) of 30.34, Dogecoin is almost oversold. This could mean that the price will increase in the short term, assuming DOGE will have support. However, the downward trend in RSI also indicates bearish momentum. When the media reported, Dogecoin was traded at $0.2477, down 3.38% in 24 hours and 25.90% in a week. The 24-hour trading volume has reached over $1.7 billion, a sign that trading activity continues during this volatility.