DOGS is testing key support at $0.00095. Can it bounce back as new memecoins challenge it?
- DOGS hit a support at $0.00095 as traders eyed a potential bounce back to retest $0.0011844. New memecoins CATI and HMSTR could steal trading volume, impacting DOGS’ recovery.
Dogs [DOGS] dipped to the bottom of its established trading range, with support around $0.00095 and resistance at $0.0011844.
Traders are closely watching to see if the price will bounce off the support level, potentially sending it back to retest the range top.
According to crypto analyst Zen,
“$DOGS dipped as expected and bounced to $0.0011844 – that is the top of its range now with the bottom around $0.00095 where price is now.”
Zen further suggested that if DOGS bounces from this support level, there is a strong chance for another retest of the range top.
A break above this resistance could trigger further bullish momentum and challenge the bearish pressure that has kept the price down recently.
Key technical levels and bullish breaker target
The key technical levels to watch include the $0.00104 area, identified by Zen as the day bullish breaker equilibrium (EQ). Another critical level is the lower breakout point at $0.001023.
Should DOGS revisit these levels, traders might see a potential upward move toward the $0.00121 target, which represents a 2:1 risk-reward ratio.
Source: X
Mikybull Crypto, another analyst, noted that DOGS appears to be forming an inverse head and shoulders pattern, a bullish reversal signal.
This technical pattern features three troughs, with the middle one being the deepest, often followed by a breakout above the “neckline.”
Traders are watching this pattern closely, as it could indicate a shift in market sentiment toward a bullish breakout.
Rising competition from memecoins
While DOGS is showing signs of a potential recovery, the launch of new meme coins like CATI and HMSTR on Binance’s Launchpad may affect its momentum.
These new projects could dilute trading volume and interest in DOGS as traders shift their focus to the next popular meme coin.
The market rotation toward fresh launches might impact DOGS, making it essential for traders to monitor how the token responds to this increased competition.
Market activity and address decline
On the 16th of September, DOGS recorded 115.53k active addresses and 12k new addresses, per IntoTheBlock data.
Despite these figures, the past seven days saw a 77.40% drop in active addresses and a 77.63% decrease in new addresses.
Source: IntoTheBlock
Additionally, the number of zero-balance addresses hit 68.9k, reflecting declining activity. This address drop could signal a reduction in user engagement, which could impact DOGS’ price action in the short term.
At the same time, $DOGS has seen fluctuating trading volume. The token has recorded 25.7 billion DOGS in total volume, with a price of $0.0009605 at press time.
Source: IntoTheBlock
Over the past week, trading volume averaged 24.03 billion DOGS, with a high of 43.31 billion on the 15th of September and a low of 13.42 billion on the 14th of September.
This volatility could suggest that traders are still uncertain about DOGS’ future direction, awaiting a clear signal of either a breakout or continued consolidation.
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