Dogecoin Tests Critical Support, Bullish Momentum Could Trigger Surge to $0.16 Target

• Dogecoin retests key $0.106 support after a 45% price surge, with $0.155 as the next major resistance if momentum returns.
• RSI shows weakening momentum, with the current level near 50, suggesting a potential shift in bullish momentum for Dogecoin.
• A “death cross” between the 50 and 200 EMAs signals bearish pressure, with Dogecoin trading below both moving averages at $0.105.

Dogecoin (DOGE) is approaching a crucial support level, as indicated by crypto analyst Ali Martinez. According to the analyst, Dogecoin is currently retesting the breakout point of a descending triangle. This pattern could lead to a rebound, with a potential price target of $0.16 if the support holds.

Dogecoin’s Price Action and Key Support Levels

Dogecoin’s price has been trading in a descending triangle formation, with lower highs and stable lows. The breakout above the resistance at around $0.106 marked a 45% price increase, reaching a high near $0.155. 

Currently, Dogecoin is testing the previous breakout level of $0.106, which serves as the key support zone. If this level holds, a bullish momentum may drive the price toward the next resistance at $0.155.

RSI Analysis Indicates Momentum Shift

The Relative Strength Index (RSI) has resembled Dogecoin’s price movement, initially confirming the breakout above its descending trendline. However, after pushing past 60, the RSI is now retreating to just above 50, indicating that momentum is waning. Despite this, the RSI hasn’t hit overbought levels, meaning there could still be room for a bullish rally if buyers return.

Short-Term Market Outlook and Moving Averages

At press time, Dogecoin was trading at $0.105, just below the 200-period Exponential Moving Average (EMA) on the 4-hour chart, a critical level at $0.10917. 

The price has fallen below both the 50 EMA and 200 EMA, signaling strong bearish pressure. Notably, a “death cross” has occurred, where the 50 EMA crosses below the 200 EMA. This signals a continued downtrend unless Dogecoin can recover above these levels.