Dogecoin (DOGE) is navigating a critical technical juncture, retracing recent gains and testing a historically significant support zone between $0.085 and $0.088. The memecoin corrected below the $0.1010 and $0.1020 levels, finding a temporary base above the $0.0980 support. Currently, DOGE is trading above the $0.10 level and the 100-hourly simple moving average, with a bullish trend line forming with support at $0.0968 on the hourly chart.
The price action is being closely watched as it tests a rare historical trendline. This specific trendline has only been tested three times in DOGE's history, with the first two instances preceding major price surges. Analysts suggest that a daily close above $0.096 could signal a return of bullish control, potentially targeting resistance levels at $0.10, $0.116, and even $0.135 if accompanied by increased volume.
Conversely, failure to hold the $0.085 support zone is a significant risk. A break below this level could trigger liquidations on approximately $26.56 million in leveraged long positions and potentially accelerate a drop toward the next major support area between $0.065 and $0.070.
On-chain data reveals underlying strength despite price consolidation. Whale activity has increased, with large transfers exceeding $100,000 and $1 million spiking in late February and early March. Furthermore, active addresses on the Dogecoin network crossed 973,000 this month, marking an 11.9% increase and indicating growing network usage.
Market sentiment is being significantly influenced by speculation surrounding the upcoming launch of "X Money." Elon Musk confirmed early public access for the financial feature next month. While DOGE was not directly mentioned, Musk's historical promotion and integration of Dogecoin across his platforms have led the trader community to speculate on potential positive impacts. This speculation has fueled bullish scenarios, with some analysts suggesting a long-term target of $1.20, contingent on the $0.085 support holding.
