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Dogecoin (DOGE) Retests Crucial Descending Channel as Bullish Breakout Stalls, Shares Next Possible Targets

Vignesh Karunanidhi

January 23, 2024

Dogecoin has forged a notable price recovery recently after defending critical support around $0.07. As highlighted by trader Crypto Nathan, DOGE broke out of a descending channel pattern that had defined the prevailing bearish downtrend over the past 10 months.

This upside breakout suggested a bull revival could be underway. However, DOGE has pulled back to retest prior channel resistance as new support around $0.082.

Retest Will Make or Break Bull Case

These retests of breakout levels often determine whether a breakout succeeds in flipping a trend. A springboard bounce from here would confirm the channel breakout, with bulls eyeing continued upside toward $0.12. 

However, failure to hold the former resistance trendline on this retest would call into question the viability of the recent breakout. Such a false breakout could plunge DOGE back toward crucial demand around $0.07.

Any decisive breakdown through $0.07 support would void the near-term bullish outlook. The next significant support holds around $0.065 based on the prior bullish order block.

As a highly volatile and trend-driven asset, Dogecoin’s next directional move could set the tone for the coming weeks and months. With buyers and sellers wrestling around important technical levels, this retest marks the latest critical battleground.

Assessing whether rebounded momentum or bearish exhaustion defines resulting price action should inform tactical next steps. Though mostly detached from broader fundamentals, Dogecoin markings can offer insights into prevailing speculative appetites.

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