Dogecoin Maintains Support Level Despite Market Downturn

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Cryptocurrency markets have experienced a broad decline, yet Dogecoin (DOGE) impressively maintained its value above the $0.075 support level. The altcoin has rebounded from this level three times, indicating active buyer accumulation at lower prices, which could signal a positive sentiment in the market.

Momentum for a Dogecoin Rise

However, Dogecoin’s upward movement is currently capped at the resistance level of $0.0877, which could lead to a period of sideways trading. Can the ongoing market reversal provide the necessary momentum for DOGE to initiate a sustained recovery? Significant fluctuations for Dogecoin were observed in January 2024. The token price exhibited sharp volatility between $0.087 and $0.0753. Despite the broader crypto market downturn, Dogecoin impressively stayed above the $0.075 support level, which could indicate strong buyer interest at these lower prices.

The daily timeframe chart reveals that this support level coincides with the 61.8% Fibonacci retracement level and the 200-day EMA, making it a significant focal point for buyers. The recent uptick in the EMA slope led to a 6.5% increase in Dogecoin’s value over the week, with its current price around $0.081.

Expert Opinion on DOGE

Additionally, the Dogecoin network is experiencing an extraordinary growth surge that has caught the attention of the cryptocurrency community. According to forecasts shared by renowned crypto analyst Ali Chart, the number of new addresses on the Dogecoin network showed an interesting increase of 1,100% last week. On January 29th, the cryptocurrency network witnessed a historic milestone with the creation of 247,240 new DOGE addresses, reaching an all-time high. This remarkable expansion of the network could have a positive impact on DOGE’s value in the near future.

With the network’s development and a broader market recovery, the DOGE price could potentially overcome the general resistance of $0.087. Successfully breaking through this resistance could increase buying momentum and raise Dogecoin’s value by 22%, reaching the upper boundary of the long-standing triangle formation at $0.107. If this upward breakout from the formation occurs, it could be an early signal of a trend reversal for Dogecoin.

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