Dogecoin Faces Selling Pressure, Testing Key Support Levels
Dogecoin has experienced ongoing selling pressure, recently dropping below the critical support level of $0.17 within the last 24 hours. This decline aligns with a broader downturn in the cryptocurrency market, leaving the meme-based digital asset struggling to regain its previous upward momentum. However, a recent technical analysis by Trader Tardigrade suggests that DOGE remains within a historically relevant macro channel. If the price manages to stay within this boundary, it may indicate that the lowest point has already been reached, potentially paving the way for a significant upward movement in the months ahead.
### Analysis of Dogecoin’s Price Movement and Macro Channel
In a comprehensive technical analysis focused on Dogecoin’s price movements over the monthly candlestick timeframe, crypto analyst Trader Tardigrade shared insights on social media platform X. According to the analysis, Dogecoin has followed a clearly defined upward macro channel that has influenced its long-term price development since it was created. The analyst noted, however, that there have been occasions where the price briefly strayed above or below the channel’s upper and lower limits, only to return within its confines. Currently, the price is in a downward trend that has persisted since January, with DOGE testing the lower trendline of this macro structure. The critical question now is whether Dogecoin can bounce back from this lower trendline without deviating again, or if it will dip below this line for an extended period.
### The Importance of Staying Within the Macro Channel
Trader Tardigrade emphasized that if DOGE can maintain its position within the macro channel without breaking below the lower trendline, this would suggest that the cryptocurrency has already found its bottom. This situation resembles a pattern observed in 2017, when Dogecoin’s price adhered to the lower boundary without deviation, leading to a robust recovery and sustained upward trend in the subsequent months. However, historical price patterns from 2020 indicate that a deviation from this trend is still a possibility, which could result in DOGE temporarily trading below the trendline for several months. Currently, this lower trendline is situated around the $0.15 mark.
### Future Price Target for DOGE
Despite the recent decline in buying pressure for Dogecoin, Trader Tardigrade remains optimistic about the long-term outlook for the cryptocurrency. The analyst has set an ambitious price target of $6 for Dogecoin, contingent on the meme coin maintaining its macro structure without deviation and replicating the growth seen in 2017. At present, Dogecoin is trading at approximately $0.1687, having recently fallen below the significant $0.17 support level. The breach of this support has heightened bearish sentiment, increasing the likelihood of further price declines in the short term.
Technical indicators suggest that Dogecoin may still have room for further decline before establishing a solid support base, with $0.15 now becoming the next crucial level to monitor. A combination of factors, including technical indicators like the Relative Strength Index (RSI), could play a significant role in determining when DOGE might hit oversold conditions and reach a bottom at $0.15.
