- Dogecoin dipped 12% to $0.3340 but analysts advise against selling, citing bullish setups and key support levels.
- Analyst Trader 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 downturn, shedding over 12% from its recent high of $0.3989. Despite this, market analysts are urging traders to resist panic-selling or shorting the asset, as the broader outlook remains optimistic.
Dogecoin began the week on a bullish note, hitting a high of $0.3989, a sharp climb from its earlier levels. However, its momentum fizzled, and the price retraced significantly. As of now, the token trades at $0.3340, marking a 3% drop in the last 24 hours. This decline has wiped out most of last week’s gains, even as speculators hoped DOGE would outperform Bitcoin and XRP.
Trader Tardigrade, a prominent market analyst, interprets Dogecoin’s recent price dip as a healthy correction within a broader bullish framework, rather than a sign of weakness. He emphasized that the token is currently retesting the apex of an ascending triangle, a well-known bullish pattern. Such retests are often seen as precursors to sustained upward momentum, reinforcing optimism about DOGE’s long-term prospects.
Tardigrade pointed out that DOGE had previously broken out of its ascending triangle pattern on January 3. This breakout pushed the token past the pattern’s base level of $0.3435, triggering a robust rally that culminated in a high of $0.3989 on January 7. The pattern’s breakout and subsequent price action underscored the strength of DOGE’s upward trajectory at the time.
Looking ahead, Tardigrade remains confident about Dogecoin’s potential for further gains. He projects that the token could stage a significant rebound from its current support levels, setting the stage for an extraordinary 182% surge. 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 seasoned analyst, Crypto Zeinab, concurs with Tardigrade’s optimism. Zeinab’s analysis points to critical support levels around $0.3435, which align with the base of the ascending triangle. A chart shared by Zeinab suggests a rebound could lead 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 previously cushioned the token’s December 20 capitulation.
Dogecoin Market Action
Dogecoin has dropped 12% from its recent peak, yet its market cap remains robust at $44.6 billion. Trading volumes have fallen by 18% in the last 24 hours, reflecting growing investor caution. However, social media mentions of Dogecoin increased by 8% this week, highlighting sustained interest in its price movements.
Both Tardigrade and Zeinab suggest that Dogecoin’s current price action is part of a larger bullish setup. For traders, the message is clear: hold onto DOGE or use this dip as a buying opportunity. With the right conditions, the meme coin could rebound strongly and set new records.