Dogecoin (CRYPTO: DOGE) prices are showing signs of a surge as it continues to hold a critical support level within an ascending channel, sparking hopes of a potential breakout.

If this support holds, a significant rebound could be imminent, suggests crypto analyst Ali Martinez.

What Happened: As pointed out by Martinez, new wallet addresses on the Dogecoin network have more than doubled in the past month.

The analyst stated that if support at $0.16 gives way, Dogecoin could fall to $09. But he also sees that as a potential buying opportunity.

Dogecoin is currently trading at $0.1693, a 6% gain in the 24 hours. The price touched a low of $0.1604 and a high of $0.1727.

Dogecoin Price Action:

The ascending channel on the long-term chart suggests a bullish outlook - if DOGE can maintain this key support.

A sustained rally could take it toward the mid-channel range near $0.25 (mid-channel resistance) or even higher levels like $0.50 (upper channel resistance) if momentum really takes off.

Dogecoin Relative Strength Index (RSI) reads 34, indicating that the asset is near the oversold territory.

The downward slope of the line suggests waning buying pressure, and investors could see DOGE retest $0.16 support again.

However, Dogecoin bounced off the support at the lower end of the Bollinger Bands ($0.1505) and is now eyeing the middle Band at $19. A decisive break above the middle Band would be a strong bullish signal, likely leading to a test of the resistance at the $0.24 price level (upper Band). Traders should watch these levels closely.

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This article was written with the assistance of AI and factual verification.