Dogecoin (DOGE) Price Analysis: Analyst Warns of Another Dip, Key Levels to Watch

An analyst from the More Crypto Online YouTube channel recently discussed Dogecoin's recent price action and warned of the possibility of another dip.

A recent analysis by an analyst from the More Crypto Online YouTube channel suggests that Dogecoin’s price action could indicate the potential for another dip.

The analyst points out that Dogecoin has been trading within a sideways consolidation range over the last ten days. Following the significant selloff on February 3, the coin's price experienced a brief recovery but failed to突破surpass the crucial $0.34 resistance level.

According to the analyst, this action has kept the coin's price stagnant, preventing any substantial upward movement from unfolding yet.

Amidst this ongoing sideways movement, the analyst suggests the possibility of a new lower low for Dogecoin. They note that the current price action indicates that DOGE could still be completing an ABC structure.

Typically, in this structure, the C-wave ends below the A-wave low, suggesting that a dip beneath the recent low of $0.238 might still be on the cards. At press time, Dogecoin is trading at $0.256, having notched a modest 0.83% gain on the day.

Crucial Levels for Dogecoin’s Bullish Scenario

The analyst highlights that the bullish outlook for Dogecoin remains valid as long as the coin holds above the $0.22 level. This price point coincides with the 78.6% Fibonacci retracement, and sustained price action above it supports the continuation of the bullish scenario.

However, a breach below $0.22 could invalidate the current bullish narrative, with the next significant invalidation level situated around $0.204.

Concluding Remarks on DOGE’s Next Move

If Dogecoin manages to hold its ground above this critical support level, the market might witness a recovery, kicking off the third wave of a bullish move.

To confirm a reversal and begin an uptrend, Dogecoin would specifically need to break through the first key signal line at $0.293. A stronger indication of a trend change will be signaled by a price突破surpassing the upper signal line at $0.342.

The analyst also notes that the broader market, including Dogecoin, has been trending sideways recently, with more down days than up days.

While some coins, like Solana, have seen sharp corrections, Dogecoin has held up relatively well. However, with the potential for another dip, investors are advised to keep an eye on the $0.22 support for maintaining a bullish outlook.

Furthermore, Dogecoin’s bull comeback is likely to depend on Bitcoin maintaining its price level around $97K or reclaiming the $100K mark. Over the past day, Bitcoin has posted a 1.45% gain.

DisClamier: This content is informational and not to be considered financial advice. The矛头s expressed in this article may include the author's personal矛头s and not The Crypto Basic opinion. Readers are encouraged to conduct their own diligent research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.