Critical Dogecoin Buy Areas Ahead of a Possible Rally
- Dogecoin rebounds to $0.1722 after extended downtrend.
- Analysts identify key buy zones at $0.13548 and $0.09024.
- Long-term ascending channel dating back to 2014 remains intact.
Dogecoin (DOGE) has shown signs of short-term recovery, posting gains over the past 24 hours to reach $0.1722 despite experiencing significant declines in recent weeks.
Market analysts are closely monitoring the meme cryptocurrencys price movements, with several technical indicators suggesting DOGE may experience further volatility before potentially breaking out to the upside.
A prominent TradingView analyst has highlighted crucial support levels that could determine Dogecoins near-term trajectory. After recently breaking past a resistance level, the analyst notes that a retest of the current price zone is necessary before any significant rally can materialize.
Two major buy zones have been identified where DOGE might find substantial support: a primary green zone at $0.13548 and a secondary support area at $0.09024.
Dogecoins next key targets
Should Dogecoin establish stability at either of these support levels, the analyst suggests a significant upward movement could follow, with potential targets in the $0.30-$0.40 range.
Such a move would represent a potential price increase of up to 132.3% from current levels. However, the same analyst cautioned that the broader market conditions remain challenging, with more lows than upsides possible as bearish sentiment gradually intensifies.
Meanwhile, respected analyst Ali Martinez has provided a longer-term perspective on Dogecoins price action. Martinez focused on a prominent ascending channel visible on a logarithmic weekly chart dating back to 2014, noting that DOGE has consistently respected these channel boundaries throughout its history. Currently, Dogecoin is testing the lower boundary of this channel, which has previously provided strong dynamic support during major market corrections.
Martinez predicts that if buying pressure increases at this critical support level, Dogecoin could experience a substantial rally toward the middle or upper range of the channel.
From a Fibonacci retracement perspective, he suggests DOGE could surpass $0.45 in the short term if momentum builds. More ambitious targets include a potential move beyond $2.40 if the price reaches the channels midline, while the upper resistance aligns with the $7 mark in an extremely bullish scenario.
DOGE touched $0.47 in December 2024 before initiating its current retracement. The handle portion of this pattern now shows signs of consolidation, which typically precedes an upward movement if the pattern completes successfully. Adding to this bullish case, the analyst pointed to an AB=CD harmonic pattern that suggests a potential target price of $0.88 if confirmed.
Read more: https://thenewscrypto.com/critical-dogecoin-buy-areas-ahead-of-a-possible-rally/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
