Crypto Analyst Says Dogecoin Has Broken Macro Downtrend, Now Testing Support Between These Levels

Dogecoin DOGE/USD  has seen a notable decline in price, with its value diminishing sharply. Yet, when looking at the broader trend over the last month, the meme cryptocurrency has painted a positive picture with a rise of 78%.

What Happened: Pseudonymous crypto analyst Rekt Capital, shared on X regarding Dogecoin’s trajectory. “DOGE broke its macro downtrend and successfully retested it as support two weeks ago." 

The analyst described how the meme cryptocurrency is traversing a phase of price adjustment, oscillating between $0.12 and $0.20, and noted, “Retest phase still in progress.”

According to the analyst, after breaking the downtrend, Dogecoin’s price went back down to touch or come close to the previous decreasing trend line, which is now acting as a “support” level.

A support level is a price point at which a downward price trend can pause due to a concentration of demand or buying interest. The fact that Dogecoin “successfully retested” this level implies that its price didn’t fall below this trend line, which could indicate a newfound stability or potential for a price increase.

Investors searching for a safer entry point should consider the $0.19 mark, warned Rekt Capital for those not yet invested.

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

Why It Matters: Data from Santiment reveals that Dogecoin’s daily active addresses saw a decline last week, and the transaction count similarly decreased, hinting at reduced trading activity among investors.

Despite the downturn in network activity, DOGE experienced an uptick in the last 24 hours, aligning with an improvement in the broader market conditions. At the time of reporting, data from CoinMarketCap indicates that Dogecoin’s price has increased by over 6%.

Trading at $0.1493 with a market value exceeding $21 billion, Dogecoin is currently positioned as the 10th largest cryptocurrency by market capitalization. Analytical metrics such as the Relative Strength Index (RSI) and Money Flow Index (MFI) have also registered declines.

Price Action: At the time of writing, the price of DOGE was $0.13, down 11% in the last 24 hours, according to Benzinga Pro.

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