- DOGS hit support at $0.00095 as traders eyed a potential bounce to retest $0.0011844.
- New memecoins CATI and HMSTR could steal trading volume, impacting DOGS recovery.
Dogs (DOGS) have dipped to the bottom of their established trading range, with support around $0.00095 and resistance at $0.0011844.
Traders are watching closely to see if price will bounce off the support level, potentially sending it back to retest the range top.
According to crypto analyst Zen,
“$DOGS dropped as expected and bounced to $0.0011844 – this is the top of its range now with the bottom around $0.00095 where the price sits now.”
Zen also suggested that if DOGS bounces from this support level, there is a strong chance of 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 low recently.
Key Technical Levels and Bullish Breakout Target
Key technical levels to watch include the $0.00104 area, which Zen identified as the day’s bullish breakout equilibrium (EQ). Another critical level is the breakout point below $0.001023.
If DOGS revisits these levels, traders could see a potential move higher towards the $0.00121 target, representing a 2:1 risk/reward ratio.
Source: X
Mikybull Crypto, another analyst, note 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 break above the “neckline.”
Traders are watching this trend closely as it could indicate a shift in market sentiment towards a bullish breakout.
Growing competition from memecoins
While DOGS is showing signs of potential recovery, the launch of new meme coins like CATI and HMSTR on Binance Launchpad could affect its momentum.
These new projects could dilute trading volume and interest in DOGS as traders shift their attention to the next popular meme coin.
The market rotation towards new launches could impact DOGS, making it essential for traders to monitor how the token reacts to this increased competition.
Market activity and address decline
On September 16, DOGS recorded 115,530,000 active addresses and 12,000 new addresses, per In the block data.
Despite these figures, the last seven days have seen a 77.40% drop in active addresses and a 77.63% decrease in new addresses.
Source: IntoTheBlock
Additionally, the number of zero-balance addresses reached 68.9k, reflecting a decrease in activity. This decrease in addresses could signal a reduction in user engagement, which could impact DOGS price action in the short term.
At the same time, the trading volume of $DOGS fluctuated. The token recorded 25.7 billion DOGS in total volume, with a price of $0.0009605 at the time of going to press.
Source: IntoTheBlock
Read Dogs (DOGS) Price Predictions for 2024-2025
Over the past week, trading volume averaged 24.03 billion DOGS, with a high of 43.31 billion on September 15 and a low of 13.42 billion on September 14.
This volatility could suggest that traders are still uncertain about the future direction of DOGS, waiting for a clear signal of a breakout or continued consolidation.
