A Dogecoin price rebound may be imminent as the asset nears a critical support level.Dogecoin has been locked in a downtrend since mid-December 2024 amid broad market uncertainty. Notably, it has fallen 65% from a high of $0.48434 to as low as $0.16534, nearly erasing all of its Q4 2024 gains. This decline has now brought the asset near a critical line of defense, according to one leading analyst.Dogecoin Rebound Imminent?In an X post on Monday, March 10, market analyst Ali Martinez highlighted that Dogecoin was nearing critical support at $0.16.The $0.16 support level aligns with the bottom of a multi-year ascending channel on the memecoin's weekly candlestick chart and the 0.786 Fibonacci retracement level.Dogecoin nears bottom of multi year ascending channel. Source: Ali MartinezDogecoin nears bottom of multi-year ascending channel | Ali MartinezMartinez noted that holding above this level could signal a "strong rebound."Optimism that a rebound is likely has been stoked by key on-chain metrics.For one, whales on the network have been on a buying spree in the past few days. On Sunday, March 9, Martinez shared Santiment Feed data showing that investors with holdings above 1 billion DOGE had added over 1.7 billion DOGE (worth nearly $300 million at current prices) 72 hours prior. It is important as the activities of these investors typically precede significant market moves.Dogecoin whale activity. Source: Ali MartinezDogecoin whale activity. Source: Ali MartinezAt the same, network interest appears to be on the rise. Also on Sunday, Martinez highlighted that the number of active addresses on the network surged 270% from 71,750 to 264,000 in the 24 hours prior.Dogecoin active addresses. Source: Ali MartinezDogecoin active addresses. Source: Ali MartinezDogecoin is not without catalysts amid pending spot exchange-traded fund applications. Still, bulls will likely want to see some clarity emerge in current geopolitical conditions, creating an avenue of relief for risk markets like crypto.
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