"DOGE Hangs on a Knife Edge: $0.23 Support Test Could Make or Break Recovery"

Dogecoin (DOGE) is currently facing a critical test of support at around $0.23, raising questions about its potential recovery in the current market climate. As the cryptocurrency hovers around this significant support level, indicators suggest that this could be a pivotal moment for DOGE, depending on market sentiment.

Analysts from COINOTAG highlight that if DOGE fails to hold this level, it could pave the way for a deeper correction. Dogecoin is testing critical support as price movements indicate potential recovery or further declines, while active addresses decrease signals lower interest.

Dogecoin has fallen significantly from its peak, with the price trading at $0.25299 as of this writing. The 200-day moving average (MA) was positioned at $0.23045, acting as a critical support level for the cryptocurrency. Historically, DOGE has rebounded from similar levels when market conditions favored a recovery. However, if this support fails to hold, a deeper correction could be on the cards.

The Fibonacci retracement levels suggest that DOGE has already broken below the 0.618 level ($0.39485), a key area that often determines the continuation of trends. The next major support is near $0.23045, coinciding with the 200-day MA, which could act as a safety net for buyers.

A closer look at DOGE’s Relative Strength Index (RSI) shows that the asset is nearing oversold territory, sitting at 33.32. Typically, an RSI below 30 signals that an asset is heavily oversold and may be due for a bounce. However, continued weakness in market sentiment could lead to further declines before any meaningful recovery takes place.

Another crucial metric to assess is Dogecoin’s Active Addresses, which have seen a substantial decline from their peak levels. The data showed that Active Addresses have dropped from over 9.8 million in December to around 1.32 million. This suggests decreased network activity, often correlated with lower speculative interest. However, historical trends indicate that significant drops in network activity sometimes precede a recovery, especially if long-term holders start accumulating DOGE at lower prices.

For a bullish scenario to materialize, DOGE needs to hold above $0