Dogecoin News Today: Dogecoin Falls 8.6% as Key Support at $0.23 Put to Test After 25% Rally

Dogecoin (DOGE) has experienced an 8.6% decline following a recent rally, with the cryptocurrency retesting a critical support level near $0.23. The pullback comes after a seven-day surge of over 25%, driven by renewed market optimism and a broader crypto sector rebound. Analysts highlight that the current price action mirrors patterns observed in late 2024, where DOGE retested key levels before a significant upward move. The recent correction has drawn attention to technical indicators and historical price behavior, with experts emphasizing the importance of holding the $0.23 resistance-turned-support threshold to confirm a sustainable bullish trajectory.

The cryptocurrency’s recent trajectory began with a mid-July breakout from the $0.23–$0.24 range, pushing it past May highs to reach $0.28 by Monday. However, a subsequent 9% retreat has brought the price back to the $0.23–$0.24 consolidation area. Crypto analyst Kaleo noted that this retest aligns with historical performance, stating, “If you’re not stacking Dogecoin on the retest of this breakout, you’re wrong.” He referenced the Q4 2024 pattern, where DOGE retested its breakout level before surging to a multi-year high of $0.48.

Technical analysis from Ali Martinez further underscores the significance of the $0.25 level, identifying it as the neckline of a double bottom pattern. Martinez described this as “a key support zone that could offer a solid entry point before the next leg up.” According to his analysis, a successful defense of this area could position DOGE for a rally toward $0.33–$0.40, with the next major resistance at $0.36. Meanwhile, Rekt Capital observed that DOGE’s retesting of its multi-year uptrend as support—currently around $0.22—has been instrumental in its recent gains. The analyst emphasized that a monthly close above $0.22 would signal a critical turning point, transforming pre-halving highs into potential support for future rallies.

The weekly and monthly charts remain pivotal in determining DOGE’s next move. Rekt Capital explained that dips into the $0.22 range could validate a confirmed breakout on both timeframes. For the weekly chart, a retest of the double bottom neckline would reinforce bullish momentum, while a monthly close above $0.22 would mark a key technical milestone. However, the token’s ability to reclaim the $0.27 resistance—previously a barrier—depends on the success of the current support test. Analysts caution that a failure to hold $0.23 could trigger further downward pressure, though a successful retest might signal weakening resistance at $0.27.

As of the latest assessment, Dogecoin trades at $0.24, reflecting a 54% increase over the month. The price action underscores the cryptocurrency’s volatility amid broader market dynamics, with technical indicators and analyst commentary offering a roadmap for potential next steps. Investors are advised to monitor the $0.23–$0.25 range closely, as these levels could determine whether DOGE continues its upward trajectory or faces renewed bearish pressure.

Source: [1] [Dogecoin Retests Crucial Support Following 8.6% Drop – Here Are The Levels To Watch] [https://www.newsbtc.com/news/dogecoin-retests-crucial-support-following-8-6-drop-here-are-the-levels-to-watch/]