Dogecoin hits key support – Is a major rebound on the horizon?

• Dogecoin’s price hovered near $0.23, a key support level, with RSI approaching oversold conditions at 33.32.
• Active addresses have dropped significantly from 9.8M to 1.32M, signaling reduced network activity.

Dogecoin [DOGE] has reached a critical support level, raising speculation about whether the memecoin can stage a strong rebound or continue its downward trajectory. 

After experiencing a steep decline over the past few weeks, DOGE is now hovering around key technical levels that could determine its next move.

Dogecoin’s decline and the importance of support levels

Dogecoin has fallen significantly from its peak, with the price trading at $0.25299 as of this writing. The 200-day moving average [MA] was positioned at $0.23045, acting as a critical support level for the cryptocurrency. 

Historically, DOGE has rebounded from similar levels when market conditions favored a recovery.

However, if this support fails to hold, a deeper correction could be on the cards.

Source: TradingView

The Fibonacci retracement levels suggest that DOGE has already broken below the 0.618 level [$0.39485], a key area that often determines the continuation of trends.

The next major support is near $0.23045, coinciding with the 200-day MA, which could act as a safety net for buyers.

Source: TradingView

RSI and market sentiment indicate…

A closer look at DOGE’s Relative Strength Index (RSI) showed that the asset was nearing oversold territory, sitting at 33.32. Typically, an RSI below 30 signals that an asset is heavily oversold and may be due for a bounce.

However, continued weakness in market sentiment could lead to further declines before any meaningful recovery takes place.

Active addresses drop, but could a rebound follow?

Another crucial metric to assess is Dogecoin’s Active Addresses, which have seen a substantial decline from their peak levels.

The data showed that Active Addresses have dropped from over 9.8 million in December to around 1.32 million.

This suggests decreased network activity, often correlated with lower speculative interest.

Source: Santiment

However, historical trends indicate that significant drops in network activity sometimes precede a recovery, especially if long-term holders start accumulating DOGE at lower prices.

What’s next for DOGE?

For a bullish scenario to materialize, DOGE needs to hold above $0.23045 and reclaim the 50-day MA at $0.32976 as support. A breakout above $0.36 would be the first sign of a potential uptrend continuation.

Conversely, if DOGE loses support at $0.23, the next key level to watch would be $0.20, which served as resistance before the late 2024 rally.

– Read Dogecoin (DOGE) Price Prediction 2025-26

With DOGE at a pivotal juncture, traders should keep an eye on key technical indicators and network activity to gauge the likelihood of a rebound.

The coming days will be crucial in determining whether Dogecoin can regain momentum, or if further downside awaits.