Dogecoin (DOGE) Price Has Captured the Market's Attention as It Trades Perilously Close to Key Support

Dogecoin price has captured the market's attention this week as it trades dangerously close to a key support level.

Dogecoin (DOGE) price has been closely watched this week as it trades dangerously close to a key support level. While bulls are trying to hold the line at $0.16, failure could derail a potential 250% breakout advance, crypto market analyst Ali Martinez warns.

Dogecoin faces make-or-break moment

As shared by the analyst on Monday, Dogecoin now faces a make-or-break moment. If it manages to maintain the $0.16 support, it could open the door for a substantial breakout to reach the $0.57 resistance. However, if the coin drops below this crucial level, the next target on the downside is $0.06.

“If $DOGE maintains $0.16, a breakout to $0.57 is likely. If not, $0.06 comes next.”

At the time of writing, DOGE is trading at $0.1654, having hit a low of $0.1624 earlier in the day. So far, the coin has managed to stay above the $0.16 mark, which traders are now watching closely as it could determine whether the coin continues to recover or if it collapses further.

Dogecoin price at A-line

Martinez further noted that Dogecoin is forming a descending wedge pattern on the daily chart. This pattern is typically encountered during a trending market and signals a continuation of the prevailing trend.

However, in a ranging market, the wedge pattern is known to herald a reversal. In this case, a breakout above the wedge pattern’s resistance is needed to confirm the bullish reversal.

If buyers can push the price higher from the current range, Dogecoin has the potential to rally significantly. It would need to overcome the nearby resistance at $0.18 and $0.21, paving the way for a rally towards the pattern's apex at around $0.30.

After that, the pattern's Fibonacci levels suggest that the coin could rise to $0.57. This aligns with the 1.618 Fibonacci extension at $0.57, providing a strong technical target for the move.

At the same time, the Fibonacci 0.5 and 0.618 retracement levels, located at $0.193 and $0.205, respectively, could act as stepping stones for the rally. A breakout beyond these levels would likely trigger fresh momentum and attract sidelined traders.

Traders share bullish takes, but with varying targets

One trader, known as Cryptokartha, observed that DOGE "looks active for a bounce" on the daily chart. They anticipate a breakout that could increase the price to $0.50.

Another user, CryptoELLITES, offered a much more aggressive take, boldly declaring that "DOGE has hit the bottom!"

"Expecting at least $2 by end of April/May. Take note of this post for future reference," they added.

While such a bold claim lacks data, the post reflects the growing retail excitement around the coin's current price action.

One post shared by market watchers showed a TradingView chart that indicated a 71% breakout target of $0.30 if DOGE confirms the wedge breakout.

This corresponds with the 1.618 Fibonacci extension level at $0.307, which could act as a magnetic zone for the price, especially if sufficient volume accompanies the move.

The $0.30 target aligns with the 1.618 Fibonacci extension at $0.30712, further highlighting its technical relevance.

Before reaching that zone, Dogecoin must break through the Fibonacci 0.5 level at $0.193 and 0.618 at $0.205, which are acting as near-term resistance.

If bulls can flip these levels into support, then upward momentum could build quickly.

The Relative Strength Index (RSI) reading of around 43.60 suggests that DOGE remains in neutral territory, implying potential upside room if the bulls take control.

Derivatives data suggests cautious mood

While technical analysts are leaning bullish, derivatives data suggests a more cautious mood.

According to Coinglass, Dogecoin's future open interest fell 3.61% to $1.55 Billion in the past 24 hours. A dip in open interest can signal reduced confidence in continued upside.

At the same time, derivatives volume jumped 40% to $5.24 Billion. This surge in volume could be linked to short-term speculation, hedging activity, or renewed day trading interest in the coin.

In other words, the data shows that some participants are positioned for a potential breakout, while others are exiting or staying on the sidelines to avoid the volatility.

Dogecoin price is now at a crossroads. A clean hold above $0