Dogecoin Retests Crucial Support Following 8.6% Drop – Here Are The Levels To Watch

Dogecoin has retraced to retest a crucial level as support after a massive 25% increase over the past week. The cryptocurrency had broken out of the $0.23-$0.24 resistance and soared to the $0.28 area before correcting 9% and retesting its breakout level around the $0.23 mark. Analysts believe that holding its current price range would set the stage for reclaiming the next key area. Crypto analyst Kaleo suggests that if Dogecoin can hold its current level, it could repeat its Q4 2024 performance and start an explosive rise to its multi-year high of $0.48. Ali Martinez notes that DOGE is retesting the neckline of its double bottom pattern, situated around the $0.25 mark, which could offer a solid entry point before the next leg up. Rekt Capital explains that Dogecoin has successfully retested its multi-year technical uptrend as support, enabling its rally to the upside. A monthly close above the $0.22 level would position Dogecoin price for a post-breakout retest of this level as support in August. The analyst also notes that any dips on the Weekly timeframe into the ~$0.22 region would figure a post-breakout retest attempt of the Double Bottom. Dogecoin's re-challenge of the $0.27 resistance depends on the success of the ongoing retests, and a reclaim of this area would signal that it is weakening as a rejection point. As of now, Dogecoin is trading at $0.24, a 54% increase in the monthly timeframe.