Doge (DOGE) has successfully retested the recent downtrend line and captured technical bullish signals, raising expectations for a short-term strength reversal. Market analysts are focusing on the possibility of Doge breaking through the 0.25-0.36 dollar range, with multiple chart indicators supporting this view.
As of the 28th, Doge is trading at 0.242 dollars, up 2.5% from the previous day. Although it experienced a temporary adjustment at the previous high of 0.27 dollars, it is maintaining a solid base at the core support level of 0.23 dollars. The market's attention is drawn to the fact that the downtrend line, which was previously a resistance, has now transformed into a support line, making the breakout signal more definitive.
The analyst 'Trader Tardigrade', who remains active on Twitter, analyzed that a hidden bullish divergence has formed through the RSI (Relative Strength Index). This occurs when the price forms a lower high while the RSI records a higher low, suggesting the possibility of continued strength. He assessed that "the downward correction could be temporary, and Doge's medium-term trend remains on the upside".
On the 4-hour candlestick chart, these bullish signals are appearing comprehensively. Between July 24th and 26th, Doge recorded a hidden bullish divergence and a regular bullish divergence in the same price range. Both indicators suggest that buying pressure is recovering, further increasing the possibility of a technical rebound. With buying pressure detected in this range, the price has settled again above 0.24 dollars.
Interestingly, while user activity numbers have decreased, this has not significantly impacted the price. According to the on-chain analysis company glassnode, the number of active Doge wallets has decreased from over 100,000 in mid-July to 58,688 as of the 27th. Despite this, Doge's ability to defend its price suggests that while active traders have reduced, large investors are accumulating.
Crypto analyst Ali Martinez also diagnosed that "Doge has currently entered the accumulation zone where past surges began". Particularly, if it surpasses 0.25 dollars, the analysis suggests it could open the way to 0.36 dollars, which is a psychological resistance and previous rally starting point. This implies that medium to long-term rebound possibilities are still alive in the market.
Amid waning interest in meme coins, Doge's recovery could once again draw market attention. The trend line breakout, bullish signal divergence, and accumulation by large wallet addresses are evaluated as key elements heralding Doge's next rally.
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