Dogecoin price shows signs of recovery potential

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Dogecoin (DOGE) and Pepe (PEPE) prices retraced over 10% this week and retested their key support levels on Thursday. Off-exchange investors looking to accumulate dog-themed and frog-themed meme coins may consider buying at their support levels in hopes of a potential rebound in the future.

Dogecoin price reached an annual high of $0.48 on December 8, then fell over 23% in the following 10 days. On Tuesday, Dogecoin retested the 50-day exponential moving average (EMA) at $0.35. This level roughly aligns with the 61.8% Fibonacci retracement level from the low of $0.14 on November 3 to the high of $0.48 on December 8, making it a crucial reversal area. As of Thursday when this article was written, the price has slightly rebounded, trading around $0.36.

Off-exchange investors looking to accumulate dog-themed memecoins can invest around the $0.35 level.

If the $0.35 support level holds and DOGE recovers, it may continue its recovery momentum of 13.5%, retesting the high of $0.41 from Tuesday.

However, the relative strength index (RSI) on the daily chart has fallen below the neutral level of 50, indicating strong bearish momentum. If the bulls do come back, the RSI must remain above the neutral level. Such a development would add momentum for a recovery rebound.

However, if DOGE fails to find support near $0.35 and closes below $0.34, it may continue its decline of 7%, retesting its next support level at $0.31.

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