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Dogecoin Faces Critical Support Level Amid Market Bloodbath
Dogecoin, the popular meme coin, experienced a significant crash in the recent crypto market downturn, recording double-digit losses. This has pushed its support lower, with $0.112-$0.123 now serving as the crucial level to hold. But what happens if it falls below this support?
Dogecoin Must Hold Support At $0.112-$0.123
Renowned crypto analyst YG Crypto, in a recent analysis, identified $0.112-$0.123 as the major support levels for Dogecoin following the price crash. These levels are significant as they have previously prevented massive price crashes for Dogecoin. As of now, Dogecoin needs to maintain above this level to continue its bullish trend. However, if it fails to hold, it could signal further downward pressure, leading to a potential 15% crash and a cumulative 50% decline in the DOGE price from its 2024 peak.
DOGE Price Could Break Out Higher
Despite the bearish fundamentals, not all analysts are expecting a price decline. Crypto analyst Ali Martinez has identified a formation in the DOGE price chart that hasn’t been seen since 2021. Martinez explained that the Dogecoin price had finally broken out of a descending triangle, a historically bullish sign. The analyst also noted that the current 40% drawdown in the meme coin’s price is in line with historical performance. In 2017 and 2021, similar declines were followed by significant bull runs. If history repeats itself, Martinez believes that DOGE can rally 4,600% to $6.
Conclusion
The future of Dogecoin’s price hangs in the balance as it faces a critical support level. While some analysts predict a further decline if the support level fails, others see potential for a significant rally based on historical trends. As always, market sentiment and global economic factors will play a crucial role in determining the future trajectory of this popular meme coin.
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