Dogecoin Holds Key Support at $0.13, Eyes 4.90% Gain

Dogecoin (DOGE) has been maintaining a steady uptrend since October 2023, currently aligning with the critical 61.8% Fibonacci retracement level at $0.13. This convergence presents a strong bullish signal, especially if the price action remains above it. Previous bounces from this level have often preceded upward moves, making it a key support zone for DOGE.

At the time of writing, DOGE was trading at $0.1446, marking a 4.90% decline in the past 24 hours. However, the overall structure indicates a potential bullish breakout, with DOGE positioned at the edge of a falling pennant formation. Historically, such patterns often signal trend reversals, especially when backed by strong support and improving market sentiment. The $0.13 level has consistently acted as a key pivot, demonstrating its strength. If DOGE breaks decisively above the pennant, it could target resistance levels at $0.20 and potentially $0.30 in the coming weeks.

Despite the bullish technical structure, Dogecoin’s on-chain activity has not kept up. At press time, daily active addresses sat at 42,816, while the transaction count lingered at just 20,793. These low figures reflect limited user engagement, a concern for sustained upward movement. Although price action looks promising, meaningful participation must follow to validate any bullish breakout. Without strong fundamentals to back it, the rally could face exhaustion before reaching higher targets.

Dogecoin’s MVRV ratio stood at 1.47%, indicating that most holders are near their breakeven point. This suggests minimal selling pressure from those seeking to take profits. Historically, such MVRV levels have often preceded upward price movements, as they imply potential undervaluation. However, the lack of significant accumulation by large holders may limit momentum unless fresh interest emerges. Traders should keep an eye on this metric. If the MVRV ratio begins to rise, it could signal evolving price action.

The Stock-to-Flow (S2F) ratio for Dogecoin has jumped sharply to 69.09, up from a consistent 29 range. This sudden increase signals a shift in perceived scarcity, potentially driving interest from long-term investors. A rising S2F ratio often correlates with price appreciation, especially if market sentiment aligns. Therefore, this spike could be an early indication of renewed accumulation. It also supports the idea that supply dynamics are shifting in DOGE’s favor.

Dogecoin is holding steady at a key support zone, backed by strong technical signals like the rising trendline and the 61.8% Fibonacci level. Although on-chain metrics remain weak, the price structure indicates potential for a reversal. The rise in the Stock-to-Flow ratio further strengthens the bullish outlook, suggesting renewed investor interest. For a meaningful rebound, stronger user engagement and increased transactional activity are essential. DOGE could recover from this level if it sustains support at $0.13 and confirms a breakout alongside improving on-chain fundamentals.