Dogecoin price has entered an important technical test after its breakout, with the token now retracing toward a key support level that could determine whether the cryptocurrency extends its bullish trend or faces a deeper correction.

At the time of writing, DOGE is trading at $0.08631, with a 24-hour trading volume of approximately $1.25 billion and a market capitalization of $13.45 billion. DOGE has declined 4.24% over the last 24 hours, drawing renewed attention to nearby support levels. Launched in 2013 as a joke based on the Shiba Inu meme, Dogecoin has since grown into one of the largest cryptocurrencies by market value, and its technical setups are followed closely by a large retail trading community.

Dogecoin Retests Key Kijun-sen Support

On August 26, crypto market analyst Trader Tardigrade commented on changes in Dogecoin’s four-hour Ichimoku setup. According to the analysis, DOGE’s recent breakout attempt is being retraced as the asset moves back toward the $0.085 Kijun-sen.

The Kijun-sen is one of the components of the Ichimoku Cloud indicator, a charting system developed in Japan that plots support, resistance, momentum, and trend direction in a single view. Also known as the base line, the Kijun-sen is calculated as the midpoint between the highest high and the lowest low over the preceding 26 periods, and it is often treated as a potential support or resistance level. If DOGE can remain above this line, the move may be interpreted as a normal retest rather than the start of a downtrend.

The chart also identifies $0.083 as another significant support area. That level is part of the broader cloud structure and could become more important if selling pressure increases.

At the same time, the forward cloud formation, the portion of the Ichimoku system projected ahead of the current price, is expanding while maintaining a bullish bias. If those conditions hold, the cloud could provide additional technical support for DOGE in the coming sessions.

However, a decisive breakdown below the Kijun-sen and the prior breakout area on the four-hour chart would invalidate the current pattern and could lead to further retracement.

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DOGE Needs to Reclaim $0.096

To preserve the bullish structure, Dogecoin price must first hold the current support zone. The next resistance level is located near $0.096.

A break above that area could extend the move toward the previous swing high near $0.10, a round number that often functions as a psychological reference point for traders, which is one reason the level is watched closely.

As a result, the $0.085 to $0.096 range is the key technical zone for DOGE in the near term. Holding the lower end would show that buyers are still defending the recent breakout area, while reclaiming the upper end would suggest the uptrend remains intact.

If DOGE fails to hold $0.083, the technical setup could reverse quickly.

Dogecoin Price Has Higher Targets Ahead

Dogecoin is currently trading at $0.08662, above the Bollinger Bands midpoint of $0.07673. The upper Bollinger Band stands at $0.09488, while the lower band is at $0.05858. Bollinger Bands consist of a moving average flanked by bands that widen and narrow with volatility, so price holding above the midpoint is commonly read as a sign that buyers remain in control of the trend.

The Relative Strength Index, or RSI, is a momentum oscillator that measures the speed and size of price movements on a scale from 0 to 100, with readings above 70 conventionally treated as overbought and readings below 30 as oversold. The RSI is at 65.43, indicating an uptrend, though it has not yet reached the overbought threshold of 70. The RSI average is 62.22, which also supports the trend. Based on these readings, DOGE may continue to target the upper Bollinger Band near $0.0948.

What Happens Next for Dogecoin?

That scenario could play out over the next few four-hour candles.

The first level to watch is $0.085, which currently aligns with the Kijun-sen. If DOGE can hold above that range, the next targets would be $0.096 and then $0.10.

Trading below $0.083 would weaken the bullish setup.

For now, Dogecoin’s technical outlook remains positive as long as price stays above its key support zones. Still, yesterday’s 4.24% decline shows that the market has not yet fully confirmed the latest upward move.

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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.