Dogecoin Approaches Critical Support Level After Trendline Retest

Dogecoin (DOGE) closed last week above the critical 0.786 Fibonacci retracement level at $0.167, following a retest of a long-standing descending trendline from its May 2021 all-time high. Key points include:

DOGE recently printed a Hammer-like weekly candle, indicating buyer strength after aggressive sell pressure.
A weekly close above $0.167 is necessary to confirm bullish momentum; otherwise, a test of the multi-year trendline may occur.
The weekly Relative Strength Index (RSI) is around 39, suggesting neutral to bearish momentum.
Resistance levels include the 100-week EMA at $0.17284 and the 50-week EMA at $0.21427.
Support is provided by the 200-week EMA around $0.13621.
Recent market behavior indicates DOGE broke down from a bearish channel but has seen strong buying interest at key support levels.
On-chain analysis from Santiment reports increased wallets holding at least 1M DOGE and active addresses at four-month highs despite recent price drops.
Analyst Daan Crypto Trades noted DOGE's recovery above significant levels, signaling potential short-term relief.

Overall, while technical indicators remain mixed, recent developments suggest cautious optimism for DOGE’s near-term performance.