Dogecoin suffered a major collapse in the carnage that rocked the cryptocurrency market earlier this week, resulting in double-digit losses in the process. This brought down its support, and $0.112-$0.123 is now the level to hold for the meme coin. But what if it falls below this support?
Dogecoin should hold support at $0.112 – $0.123
Cryptocurrency analyst YG Crypto, in analysis, identified $0.112 – $0.123 as key support levels for Dogecoin after the price collapse. In the post shared on X (formerly Twitter), the cryptocurrency analyst explained that these levels are important because they have prevented massive Dogecoin price collapses in the past.
As such, the memecoin needs to stay above this level to continue its upward trend. As of the early hours of Thursday, DOGE price continues to trade above the upper range of this level, indicating that the support at $0.123 is important.
However, YG Crypto warned that if it ends up not being able to hold, it could be disastrous for the price. “If the price breaks below this support, it could indicate further downward pressure,” the cryptocurrency analyst warned. Furthermore, a break below the lower band of this support would constitute another 15% collapse, leading to a cumulative 50% decline in DOGE price from its peak in 2024.
$dawg After the dive: Will the support hold or fold? 🫢#Dogecoin It rose to $0.228 before a recent correction that sent prices down more than 40%. Despite the decline, #DOGE It is still trading above the crucial support level of $0.112-$0.123.
This area previously prevented a decline… pic.twitter.com/JisClhaNlO
— YG Crypto (@ygcrypto) May 1, 2024
If Dogecoin can maintain this support, buying here could be a unique opportunity. However, the analyst also expressed that technical indicators are not the only useful tools, as market sentiment can also play a big role in which direction the price can go next.
DOGE price may rise higher
While the fundamentals appear to be trending lower for Dogecoin at the moment, not all analysts are expecting a price decline. One bullish cryptocurrency analyst is Ali Martinez, who identified a formation in the DOGE price chart that did not look good for 2021.
Martinez to explain In his analysis, Dogecoin price has finally broken through the descending triangle, which has been historically bullish for the price. At the same time, the cryptocurrency analyst allayed investors' concerns, saying that the current 40% decline in the price of the memecoin is on par with the trajectory of historical performance.
According to the analyst, DOGE price saw a similar 40% decline in 2017 before exiting the descending triangle. The result of this breakout was a 982% surge that sent the price to all-time highs. A similar trend was recorded in 2021 as well, when DOGE price fell by 56% before exiting the descending triangle. This time, Dogecoin continued its legendary 12,197% rise to reach a new all-time high as well.
As the meme coin seems to be following this trend more closely, the belief that it will do the same has become stronger. In the case of 2024, the price has seen a 40% decline and has now broken through the descending triangle. If history goes again, the analyst believes DOGE could rise 4,600% to $6.
Now, in 2024, #DOGE It has once again broken the descending triangle!
It is currently witnessing a 47% price correction, which is very similar to previous cycles, which may spark the next cycle. $dawg The bull ran! pic.twitter.com/ZmuHmvIwei
– Ali (@ali_charts) May 1, 2024
“Over the years, #Dogecoin seems to be reversing its previous bull cycles! All you need is a little patience,” Ali Martinez concluded.
DOGE price rises above $0.13 | Source: DOGEUSDT on Tradingview.com
Featured image from Yahoo Finance, chart from Tradingview.com