Dogecoin Must Hold This Support Or Risk Crashing To $0.015, Analyst Warns

Dogecoin (DOGE) faces a critical juncture on its long-term price chart, according to prominent crypto analyst Ali Martinez. The widely circulated chartoriginally shared via X and then dissected in a YouTube Shortshows DOGE trading within an ascending parallel channel that has guided its price action since 2014. Now, the meme-inspired cryptocurrency sits precariously above a key support zone that, if breached, could set off a severe drop.

Dogecoin Crash Incoming?

In the long-standing pattern Martinez highlighted, each time DOGE has bounced off the lower boundary of this ascending channel, it has climbed toward the upper resistance level. Conversely, DOGE has historically retreated back down to the lower boundary when it fails to break above the channels ceiling. This cycle has repeated through major swing highs in the 20172018 and 2021 periods, among others, underscoring how significant the channels lower trendline is for maintaining DOGEs broader uptrend.

Martinezs chart also features multiple Fibonacci retracement and extension levels, providing insight into historically significant price points. These important horizontal thresholds are 0.236 Fib (around $0.0068), 0.382 Fib (around $0.0159), 0.5 Fib (around $0.0316), 0.618 Fib (around $0.0625), 0.786 Fib (around $0.1652), 1.272 Fib (around $2.74), and 1.414 Fib (around $6.24). Notably, the area around $0.16$0.19 converges with the lower boundary of the ascending channel and the higher end of the Fibonacci range near $0.1650.

In his most recent YouTube Short, Martinez warned that a decisive break below the $0.19 support level could open the door for a crash toward $0.015, which aligns with the 0.382 Fib retracement.

Dogecoin could crash if it loses this level of support Dogecoin has been trading inside an ascending Channel since 2014. Dogecoin has tended to rebound from this Channels lower support trend line toward the upward resistance trend line and from this level Dogecoin tends to drop back to the lower support trend line and then it rebounds again repeating the whole cycle. But now Dogecoin is at a critical point if it breaks the $0.19 support level it could trigger a correction to $0.015, he stated.

A few days earlier, he noted on X that as long as the channels lower boundary at $0.16 holds, DOGE maintains a chance to rebound toward the mid-channel or even the upper trend line. DOGE remains within an ascending parallel channel. As long as the lower boundary at $0.16 holds, a rebound toward the mid-channel at $2.74 or even the upper boundary at $6.24 remains a probability! Martinez remarked.

However, the bullish outlook hinges on DOGE preserving this vital support zone. Any confirmed drop below $0.16$0.19 would likely confirm a significant bearish shift, paving the way for the steep corrective phase Martinez describes. Such a scenario would revisit price territory near $0.015, erasing gains Dogecoin has accumulated over several cycles.

At press time, DOGE traded at $0.20.

Text source: NewsBTC

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