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Can Dogecoin withstand market pressure at key support levels?

2026-07-23 00:35:53
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Can Dogecoin withstand market pressure at key support levels?

Dogecoin is currently at key support levels close to US$0.0711, and market indicators indicate that its momentum may shift. This cryptocurrency, often regarded as a "memecoin", is showing signs of a long-term bullish divergence. According to analyst analysis that tracks historical patterns, this could signal an upward trend in prices in the future.

Does a bullish divergence signal a reversal?

The hidden bullish divergence discovered by analyst Surf on the Dogecoin chart suggests potential bullish momentum. During the period from June 2022 to June 2026, the price of Dogecoin reached a higher low, while the monthly relative strength index reached a lower low. This pattern is often interpreted as saying that momentum is falling faster than prices, which could mean that underlying upward trends are returning.

In recent years, kinetic energy has decayed faster than the price itself, which sometimes leads to the continuation of larger upward trends. The current technology landscape suggests a long-term structural opportunity, but this does not guarantee that a reversal has begun.

However, in order to consolidate this technical pattern, Dogecoin must maintain its multi-year upward support trend and break through nearby resistance levels. If this support cannot be held, bullish deviations may fail, making the asset vulnerable to further price declines.

Can Gann's level provide support?

In addition to bullish divergences, the US$0.0711 mark faced by Dogecoin on the Gann Nine Chart, an analytical technique used to predict market turning points, is also a key test. Analyst Cantonese Cat pointed out that during the bear market from 2021 to 2026, Dogecoin interacted with these Gann levels many times.

Successfully holding this level could mean that prices will rebound to resistance levels of $0.0865 and $0.1051. However, chart analysts stressed that it was crucial to regain these resistance levels before confirming a broader trend reversal in Dogecoin, as the Gann signal should not be relied on alone.

Maintaining US$0.0711 may signal a rebound to US$0.0865, indicating a possible shift in momentum.
A breakthrough of $0.0865 would mark a partial reversal, strengthening bullish views.
Returning to $0.1051 suggests that the broader downward trend is weakening.
If $0.0711 falls, further declines may target $0.0585 and $0.0482.

If Dogecoin falls below US$0.0711, according to Gann Analytics, market attention will shift to lower support levels, such as US$0.0585 and US$0.0482, which may indicate a further downward trend.

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