Dogecoin (DOGE) has once again returned to a critical trading zone that has previously triggered significant bullish trends. An analysis of the current situation indicates that the support in this area could serve as a launching point for new asset growth.
Historical Accumulation Zone of DOGE
DOGE has returned to the lower boundary of an ascending channel that has existed since 2015. Each touch of this zone has led to significant price increases, including 1,857% in 2017 and 13,337% in 2021. Maintaining weekly closes above this zone is key to preserving bullish momentum.
Technical Indicators Suggest a Possible Rebound
On the daily chart, Dogecoin is stabilizing after retreating from resistance near $0.28. The current price is about $0.227. Meanwhile, the Stochastic RSI indicates oversold conditions, which may trigger a bullish crossover and change in trend. Support at $0.22 could facilitate a move towards the $0.26–$0.28 range in the short term.
Price History Supports a Bullish Outlook
The zone where DOGE currently stands has historically served as a launchpad for major rallies. If the current support holds, it could lead to a rise towards the $0.707 range, as was seen in past breakouts.
Dogecoin's return to key support creates opportunities for possible growth. Technical indicators show potential for trend reversal, making DOGE appealing to traders.
