Analyst Sees Dogecoin Rebound, But $0.10 Support Remains Vulnerable
Flagship meme coin Dogecoin (DOGE) is at a critical support level of $0.10. Amid growing market concerns, traders wonder if it can hold this position.
A recent analysis suggests that DOGE may face a reversal or continued decline. The market remains uncertain as selling pressure increases and supply hangover persists.
Dogecoin Retests $0.10 Support; Will It Decline Further?Dogecoin is currently retesting the $0.10 mark, a critical psychological level. According to analyst Ali Martinez, the coin is near the broken resistance trendline after a four-day price drop, leading to a 20% drop in its market cap.
It looks like #Dogecoin is retesting the breakout point from this falling wedge. If this level holds, $DOGE could soon rebound and march toward $0.16.
If you want to join me, sign up using my referral link https://t.co/73n8mWavUX, and let's trade this one together! pic.twitter.com/ILXf06I5zc
- Ali (@ali_charts) October 2, 2024
However, intraday gains of 1.07% show signs of potential recovery. Martinez points to a possible post-retest reversal, which could occur if a morning star pattern forms.
Nonetheless, selling pressure across the broader market may lead to a bearish continuation. Should Dogecoin fall below the $0.10 trendline, it could signal a failed bullish breakout.
According to its 4-hour chart, a break below this level will lead DOGE to the $0.08 region. Notably, the last date DOGE dropped to this level was August 5, 2024.
Another leading cryptocurrency analyst, Trader Tardigrade, predicted a significant price surge for Dogecoin (DOGE). He believes Dogecoin could rise over 1,000% to reach $1.6.
#Dogecoin monthly chart shows early sign of breakout to a Falling Wedge, which kicks off the start of $DOGE season
The pattern is almost the same as last two cycles.
There's no reason for this time is different.
Send $DOGE to $1.6, Doge fampic.twitter.com/snqNsDpIhO
- Trader Tardigrade (@TATrader_Alan) September 29, 2024
According to Tardigrade, Dogecoin is forming a Falling Wedge pattern, signaling an imminent breakout. This pattern has occurred in previous market cycles, leading to significant price increases.
If history repeats, Dogecoin's price could rise by 1,300% from its current $0.10 to $1.6.
Bearish Pennant Pattern Increases RiskOn the 4-hour chart, a bearish pennant pattern has formed as selling pressure surged. This pattern aligns with Elliott's five-wave correction, placing DOGE in a tricky position.
The coin is now stuck within this bearish pennant, indicating a potential further downtrend. A bullish breakout from this pattern would raise the chances of a reversal following the wedge breakout on the daily chart.
If Dogecoin manages to hold above $0.10, analysts see a potential rebound toward $0.16.Martinez suggests that this could happen if bullish momentum returns. On the upside, DOGE may face resistance at $0.1130 and $0.14026.
The MACD indicator also signals a possible bullish crossover on the 4-hour chart.However, a pullback below the $0.10 support level could weaken any recovery possibility.
The chart above shows that Dogecoin is bouncing off the lower Bollinger Band indicator, suggesting a weakening bearish momentum.
Dogecoin's Relative Strength Index (RSI) stands at 33.95, just above the oversold threshold. This level suggests that the coin has been sold heavily, but it's approaching a zone where a reversal could happen.
While Dogecoin remains bearish, the bounce off the lower Bollinger Band and the RSI nearing oversold territory provide signals of a potential trend reversal.If the bullish momentum picks up, DOGE could shift from its downtrend to a recovery phase in the coming days.
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