Dogecoin (DOGE) is demonstrating a strong structure after retesting a descending trendline and remains above the $0.24 level.
Retesting Trendline
Dogecoin (DOGE) is showing activity on the daily chart after retesting a descending trendline. This level, which previously acted as resistance, is now serving as support. The price bounced from the $0.23 mark and has stayed above this level in the latest sessions.
The trendline has confirmed the breakout, and DOGE's current price stands at $0.242, marking a 2.5% gain in the last 24 hours. Following a pullback from $0.27, DOGE is showing signs of stability, not indicating a significant drop.
Dual Divergences on 4-Hour Chart
On the 4-hour chart, Dogecoin formed two bullish divergence patterns between July 24 and 26. The first was a hidden bullish divergence, followed by a regular bullish divergence. Both patterns were observed in the same price zone, adding to the case for a trend shift.
Price has moved higher since then. Buyers have stepped in near short-term lows, and the move above $0.24 confirms follow-through. The $0.22 level remains the main support in this setup.
Decline in Active Addresses but Price Holds
Glassnode data shows Dogecoin’s number of active addresses has dropped to 58,688 as of July 27, down from over 100,000 in mid-July. Despite the lower activity, DOGE price remains steady above $0.24.
This suggests that fewer users are transacting, but larger holders may be stepping in. Crypto analyst Ali Martinez noted that DOGE is back in a zone that has triggered rallies before. A break above $0.25 could clear the way toward $0.36.
Currently, Dogecoin shows signs of stability and potential growth amid declining user activity. The confirmation of bullish divergences and the maintenance of price above key levels provide optimism for the short-term outlook.
