Dogecoin (DOGE) Price: Chart Pattern Suggests Massive 10x Move If Support Holds

Dogecoin (DOGE) Price: Chart Pattern Suggests Massive 10x Move If Support Holds

TLDR

• DOGE has fallen below $0.18, currently trading around $0.176
• Technical analysts point to $0.16 as a vital support level within an ascending channel
• Price is trading under the 100-hourly simple moving average showing bearish momentum
• If $0.16 support holds, some analysts project potential upside to $2
• Multiple resistance levels exist at $0.1620, $0.1680, and $0.1720 on any recovery attempt

Dogecoin has experienced a sharp decline over the past week. The popular meme cryptocurrency has lost more than 20% of its value during this period.

The price is currently hovering around $0.176. This represents a major pullback from higher levels seen earlier this month.

DOGE initially broke below the $0.2000 price zone. This breakdown triggered additional selling pressure in the market.

The decline continued as the price slipped under the $0.1850 level. This was followed by breaks below $0.1680 and briefly under $0.1620.

During this downward move, DOGE reached a low of $0.1440. Since hitting this bottom, the price has begun to consolidate in a tight range.

Some minor recovery has been observed above the $0.1500 mark. This represents the 23.6% Fibonacci retracement level of the recent downward movement.

The bearish sentiment appears strong in the short term. DOGE is trading below both the $0.1850 level and the 100-hourly simple moving average.

Technical analysis shows immediate resistance near $0.1620. This level coincides with the 50% Fibonacci retracement of the drop from $0.1809 to $0.1440.

A bearish trend line has formed on the hourly chart. This trend line provides resistance around the $0.1680 level, creating another hurdle for bulls.

Analysts View

Long-term chart patterns have caught the attention of analysts. One particular formation stands out in the weekly timeframe of Dogecoin’s price.

Technical analyst Ali Martinez has identified an ascending channel. This pattern shows that DOGE has been trading within two upward-sloping parallel lines for nearly a decade.

The lower boundary of this channel sits around $0.16. This makes it a crucial support level that many traders are watching closely.

Martinez suggests that if this support holds, DOGE could potentially rally toward $2. This target would bring the price to the middle line of the long-term channel pattern.

However, the downside risk remains if support fails. If DOGE breaks below the $0.16 support zone, we could see further decline in the coming weeks.

Initial support below current levels exists near $0.150. This is followed by another support zone at $0.1450, close to the recent low.

The main support level is positioned at $0.1420. A break below this could open the door for a drop toward $0.1350 or even $0.1250 in the near term.

The cryptocurrency appears to be at a decision point. Either it will find support at the lower boundary of its channel and potentially reverse, or it will break lower and extend its bearish trend.

Technical indicators continue to favor bears in the short term. However, long-term chart patterns suggest a potential bullish case if key support holds.

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