- Dogecoin fell 12% to $0.3340, but analysts advise against selling, citing bullish setups and key support levels.
- Trader analyst Tardigrade predicts a 182% rally to $0.9500, supported by technical patterns like the ascending triangle.
- Critical support lies at $0.3435, with risks extending to $0.2730 if breached; trading volumes and sentiment remain mixed.
Dogecoin (DOGE), the leading meme coin, has faced a slowdown, losing over 12% from its recent high of $0.3989. Despite this, market analysts urge traders to resist panic selling or short selling the asset as the overall outlook remains optimistic.
Dogecoin started the week on a bullish note, reaching a high of $0.3989, a sharp rise from its previous levels. However, its momentum waned and the price fell significantly. Currently, the token is trading at $0.3340, down 3% in the last 24 hours. The drop erased most of last week’s gains, even as speculators hoped DOGE would outperform Bitcoin and XRP.
Trader Tardigrade, a prominent market analyst, interprets Dogecoin The recent price decline is seen as a healthy correction within a broader bullish framework, rather than a sign of weakness. He pointed out that the token is currently retesting the top of an ascending triangle, a well-known uptrend. Such retests are often seen as harbingers of sustained bullish momentum, reinforcing optimism about DOGE’s long-term prospects.
Tardigrade pointed out that DOGE had already broken its ascending triangle pattern on January 3. This breakout pushed the token past the pattern’s base level of $0.3435, sparking a robust rally that culminated with a high of $0.3989 on January 7. The subsequent price action highlighted the strength of DOGE’s upward trajectory at the time.
Looking ahead, Tardigrade remains confident about Dogecoin’s potential for further gains. He predicts that the token could see a significant rebound from its current support levels, paving the way for an extraordinary 182% increase. This would propel Dogecoin to a potential new all-time high of $0.9500, reaffirming its status as a leading asset in the crypto market.
Another veteran analyst, Crypto Zeinab, shares Tardigrade’s optimism. Zeinab’s analysis indicates critical support levels around $0.3435, which aligns with the base of the ascending triangle. A chart shared by Zeinab suggests that a rebound could take Dogecoin back to its intra-month high of $0.3989.
If Dogecoin fails to hold the $0.3435 support level, the next safety net lies at the 0.618 Fibonacci extension at $0.2730. This level had previously cushioned the token’s capitulation on December 20.
Dogecoin Market Action
Dogecoin has fallen 12% from its recent high, but its market cap remains robust at $44.6 billion. Trading volumes fell 18% in the past 24 hours, reflecting growing investor caution. However, mentions of Dogecoin on social media increased by 8% this week, highlighting continued interest in its price movements.
Tardigrade and Zeinab suggest that Dogecoin’s current price action is part of a larger bullish pattern. For traders, the message is clear: hold DOGE or use this dip as a buying opportunity. Under the right conditions, the same coin could rebound strongly and set new records.