Dogecoin (DOGE) Has Slipped to a Crucial Support Level, Setting the Stage for a Potential Reversal

Dogecoin has slipped to a crucial support level, marking its lowest daily close since November 2024. The latest market action suggests increasing bearish momentum

Dogecoin price is testing crucial support on Monday, hitting its lowest daily close since November 2024.

The latest market action suggests increasing bearish momentum, placing the cryptocurrency at a crossroads where the next move could dictate its near-term direction.

The digital asset closed below $0.198, a significant support level, confirming a bearish structure, according to analyst Trader Tardigrade (@TATrader_Alan). Now trading at $0.190, the coin is testing a critical price zone that previously acted as strong support. If buyers fail to step in, further losses could be imminent, with the next major support levels at $0.175 and $0.144.

Dogecoin’s Potential Reversal on the Horizon?

Despite the current weakness, some analysts remain hopeful about a reversal. A TradingView analyst known as “The Cryptagon” has pointed out that Dogecoin could soon make a strong upward move, targeting as high as $0.90.

According to the analysis, Dogecoin has been moving within a Channel Up pattern for the past year. Historically, price action near the lower boundary of this channel has resulted in strong recoveries. At present, Dogecoin is once again approaching this critical area, placing the possibility of a rebound.

Adding to the optimism, the 1-day RSI has entered oversold territory, a condition that previously triggered a significant rally in August 2024. Back then, a similar setup led to a 480% price explosion between September and December 2024, with Dogecoin reaching $0.475.

Historical Trends Point to Volatility Ahead

Past performance suggests that if history repeats, Dogecoin could be gearing up for another major move. In August 2024, the cryptocurrency found support under similar conditions, bouncing back in a dramatic fashion. Notably, the previous surge aligned with the 1.618 Fibonacci extension level. If that pattern plays out again, the projected target could reach $0.90, with the March 2025 low of $0.18 serving as the new base.

However, even with this technical setup, challenges remain. The overall market sentiment leans bearish, particularly with Bitcoin facing downward pressure. Without a broader market recovery, Dogecoin could struggle to generate enough momentum for a sustained rally.

The immediate concern lies at $0.19, which remains under heavy pressure. A failure to hold this level could lead to further downside, potentially pushing the price toward $0.175 or even $0.144. For now, all eyes are on whether buyers can step in to halt the decline or if bearish forces will continue to dominate the market.

Related Readings: Bitcoin Reserve Plan: Michael Saylor Wants US to Control 25% of Supply