DOGE price starts to recover after dipping below multiple support levels, setting the stage for a potential breakout

Dogecoin is currently testing key support levels after a recent decline while positioning itself for what analysts believe could be a significant price movement.

Dogecoin (DOGE) is testing key support levels after a recent decline, setting the stage for what analysts believe could be a significant price movement. The popular meme cryptocurrency dropped below several support zones but has begun showing signs of recovery.

Dogecoin Price Analysis: Rising From lows

DOGE price started declining below the $0.1750 zone, closely following similar patterns observed in Bitcoin and Ethereum. This descent led to a slip below the $0.1720 and $0.1700 support levels, and the cryptocurrency briefly went under $0.1650.

A low point was established at $0.1646, however, traders pushed the token back above the $0.1680 level and the 100-hourly simple moving average, suggesting a potential comeback.

Technical analysis reveals a bullish trend line forming with support at $0.1680 on the hourly chart. This pattern suggests the price could gain momentum if it clears resistance at $0.1750 and $0.1800. A break above these levels could pave the way for a steeper rally.

Dogecoin has been trading within a multi-month falling wedge pattern since its January peak of $0.4350. This pattern has formed lower highs and lower lows, creating a narrowing channel that could lead to a breakout. The recent surge to $0.18 pushed Dogecoin to the edge of this wedge pattern.

Crypto analyst Carl Moon, known online as The Moon Carl, believes the meme coin is approaching a structural breakout that could trigger a sharp rally.

“Once $DOGE breaks out of this falling wedge, it will absolutely fly!

The target is the top at $0,434

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According to Moon, if DOGE closes above $0.185 on the daily chart, it could confirm a breakout. His projection suggests Dogecoin could rise 157% to $0.434 following a successful breakout.

This target aligns with the price high achieved before the inauguration of Donald Trump. However, DOGE must maintain this breakout level to avoid testing lower support zones again.

Another analyst, Whalesdesk, focused on strong support seen between $0.16 and $0.17, which prevented further downside. He highlighted the importance of holding above this range to continue the bullish trajectory.

“#Dogecoin bouncing off support at $0.16 – $0.17 after a decent move down.

Buyers are stepping in again. As long as we hold above this zone, we should continue up.

Next resistance is at $0.20, then $0.30. A break above $0.30 could open the door for $0.45 and beyond.

A move to $0.60 would make a 4-year high.”

On-chain data confirms increasing whale activity, with large holders accumulating DOGE at current levels. Throughout history, major whale buying activity has usually preceded large price movements, showcasing institutional and high-net-worth investor interest in the cryptocurrency.

Dogecoin Network Activity Surges

The Dogecoin network has seen increased user engagement and transaction numbers in recent weeks. Daily active addresses have risen, indicating more activity with DOGE coins.

Transaction volumes have also surged, suggesting growing demand for the token. Network activity often intensifies during price uptrends, and the current level of participation may support ongoing price movements.

Analyst Kevin highlighted the importance of the $0.139 level, calling it “the last line of bull market support.” He emphasized the need to maintain this level while higher timeframe indicators reset.

“My #Dogecoin Community it is about that time where I must provide you the Alpha you all desire. If we take a look at #DOGE on the weekly time frame we can see that we received a weekly demand candle last week at the "Last line of bull market support" that I pointed out a couple of weeks ago.

Now, this is important because as you can see on the chart the Weekly Stochastic RSI has already reset and we are getting a lower high on the 3-Day MACD which is also slowly approaching a reset. Now, this is setting up for a phenomenal risk-reward trade in my opinion.”

Kevin noted that the Weekly Stochastic RSI is already reset, while other indicators like the 3-Day MACD are approaching reset levels. He described the current price point as offering a “phenomenal” risk-reward ratio for traders.

The analyst tied Dogecoin’s prospects to Bitcoin’s performance, stating that as long as BTC manages to stay above $70,000, the outlook for DOGE remains positive. Many traders are closely monitoring these conditions for signs of the next major move.

Immediately ahead lies resistance for Dogecoin at $0.1755, followed by major resistance at $0.1780 and $