Dogecoin Could Rally to $2.74 – Key Support Level to Watch
Dogecoin continues to hover around the psychological $0.20 level, reflecting a tug-of-war between bulls and bears. While the coin made some positive moves earlier in the week, it has yet to sustain its bullish momentum. However, a recent technical analysis suggests that DOGE still has the potential to bounce strongly if it holds the key support level.
Can Dogecoin Rally 1,450%?
Cryptocurrency trader Ali Martinez recently shared a new perspective on Dogecoin’s price trend. According to Martinez, DOGE is in an ascending channel pattern that has been going back to 2015. This is a key technical analysis pattern in which the upper channel line acts as resistance, while the lower channel line acts as key support.
Dogecoin has been bouncing strongly every time it touches this support line for nearly a decade. If the pattern continues, DOGE could find some momentum to recover from the $0.17 area. Martinez notes that if the price holds above this support level, Dogecoin could trigger a strong rally to $2.74 – a 1,450% increase from current levels.
However, if DOGE fails to hold $0.17, the price could drop to the $0.06 Fibonacci support level, which would weaken the meme coin’s bullish outlook.
Dogecoin Is At A Key Level
Dogecoin is currently struggling to stay above $0.20. At the time of writing, DOGE is trading around $0.195, down more than 3% over the past 24 hours. This suggests that there is still quite a bit of selling pressure in the market.
DOGE price on daily timeframe | Source: DOGEUSDT chart on TradingView
However, with Dogecoin approaching a key support zone, investors will need to keep a close eye on how the price reacts in the coming days. If the bulls can hold the $0.17 zone, the possibility of a strong recovery remains open. Conversely, a break of this support could send DOGE into a deeper downtrend.
Given Dogecoin’s history of high volatility, investors need to consider carefully before making a decision, especially in the context of the unpredictable volatility of the cryptocurrency market.
