Dogecoin (DOGE) is in the midst of testing a key support level, which will dictate how the asset performs price-wise in the near future. The dog-themed meme coin is currently back under 10 cents, trading at $0.0994. DOGE has been testing this level over the past month and typically rebounds strongly following the test. This particular retest though, could have strong implications on how the meme coin performs in the second half of September.
Most holders are bullish on Dogecoin, seeing strong potential for its upcoming price. The leading meme coin is up 60% in the last year. Additionally, DOGE is up in trading volume despite the slight price dip. This indicates that there is still strong market sentiment around the coin, and holders are still moving it around hoping for a breakout.
Crypto analyst Rekt Capital has highlighted DOGE’s current post-breakout retest, where the memecoin is testing critical support levels. In the X post, the user suggests that a positive retest will confirm a new macro uptrend for the asset, seeing it rise over the next several weeks. This is good news for DOGE holders in terms of market indicators, revealing that the market is in DOGE’s favor.
The Relative Strength Index (RSI) sits at 45, indicating neutral momentum. If DOGE fails to hold its current support near $0.10, further downside could occur. On the other hand, a successful retest would likely pave the way for bullish gains, perhaps upwards of $0.20 and beyond.
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Furthermore, Dogecoin has seen several external influences externally affecting its price for the better. Elon Musk has been very vocal on the asset lately, which in the past has bode well for its price. Musks’ X platform is currently working on a new payment feature. Many DOGE fans expect the meme coin to be part of the new feature due to the billionaire’s interest in the coin. If X enables Dogecoin payments, we may witness a massive surge in the adoption of memecoins, especially DOGE.
There is also strong interest currently in Bitcoin, the leading cryptocurrency by market cap. Typically, when Bitcoin is performing well, it leads to other crypto assets reaping the benefits in price as well. While BTC remains under $60,000, trading volume around the coin remains high, currently up 128.21% in 24 hours. If Bitcoin witnesses a surge soon, it could mean a surge for the entire crypto market, including DOGE.