Dogecoin Price News: DOGE 5X the Last Time It Hit This Key Support Area

Dogecoin (DOGE) has dropped by nearly 2% in the past 7 days, even though most top altcoins have recovered.

The top meme coin has accumulated a 23% drop since the year started, as the $0.09 level has held up quite well.

This key support has been tagged multiple times in the past month and served as a platform for the token’s strong rally in August 2024.

Back then, DOGE rose from $0.09 to a local peak of $0.48, meaning a 5X+ return.

Trading volumes remain quite high lately, accounting for nearly 9% of the asset’s circulating market cap.

Weekly Chart Shows a Similar Pattern Unfolded Before DOGE’s Late 2024 Rally

We can see some interesting similarities with DOGE’s behavior ahead of that strong August 2024 rebound.

First, it was coming out of a 60% drop that had unfolded since March 2024, as the price collapsed from around $0.22 to $0.09.

DOGE/USD Weekly Chart – Source: TradingView

Meanwhile, this $0.09 support area was retested multiple times before that huge spike in early September unraveled.

Will things play out similarly this time? Truth be told, we have not seen the same strong rebounds yet that DOGE experienced back when it hit $0.09 in August 2024.

The price bounced strongly off that mark two times before the final rally. We are not getting that yet, but this is not over yet.

As long as this floor holds, there’s hope for DOGE that it might climb to at least $0.12 in the near term if a relief rally begins.

Dogecoin Weekly Trading Volumes – Source: Artemis

That said, we have seen a dramatic drop in trading volumes that underscores the market’s lack of interest not just in Dogecoin, but meme coins as a whole, probably.

As the top asset in this category, DOGE typically sets the tone for the rest of the segment. If volumes are low for this token, even after exchange-traded funds (ETFs) linked to it have been launched, it means that sentiment is as depressed as it gets.

Dogecoin Has Produced Multiple Winning Long Positions at This Key Levels

Looking at granular data in the 4-hour chart, we can see that DOGE has spiked off this mark four times already, delivering interesting gains for swing traders who have caught the move.

DOGE/USD 4H Chart – Source: TradingView

Volumes rose in the past 8 hours as DOGE hit this level again, while we got a buy signal recently at this level. What this confirms is that buying interest persists. The problem is that the selling pressure is strong, too.

Right now, this looks like an attractive swing position with a target set at $0.10 and a stop price below $0.086. This trade offers a 3.3x risk-reward ratio if this support level holds.

We have both a high time frame (HFT) key level here and multiple low time frame confirmations of its technical relevance and persistent buying pressure. If Dogecoin drops below this mark, it would confirm that the market remains broken.

However, if it rallies, as it has multiple times in the past few days, there’s another chance to profit from the rebound, even if it is just another “dead cat bounce.”