Prominent Analyst Has Predicted the Next Major Dogecoin Support After It Failed to Break Above the Resistance Area

A prominent analyst has predicted the next major Dogecoin support after it failed to break above the resistance area at $0.20.

A prominent analyst has predicted the next major Dogecoin support after it failed to break above the resistance area at $0.20.

Dogecoin is up 6% today as the broader crypto market records a strong start to the new week. Despite the surge, the doggy-themed meme coin has been unimpressive since the beginning of the year.

With a 42% year-to-date decline, DOGE is officially the worst-performing asset in the top 15 cryptocurrencies by market cap. For further perspective, the asset has reclined in six of the eight weeks this year, falling over 30% from its high of $0.2408 last week.

However, an analyst who accurately predicted further downsides for Dogecoin has highlighted the probable support the prominent meme coin will likely find solace at.

Further Downside For Dogecoin?

In a TradingView analysis, MadWhale accurately predicted that Dogecoin would break down from the psychological $0.2 resistance area at the top of its descending triangle. Notably, the meme coin lost the level two days ago, capsizing from a high of $0.2011 on March 8 to its current price.

Interestingly, the analyst predicted further downsides, specifically stating that Dogecoin could correct 20% from the resistance area. MadWhale suggested that DOGE’s next target after the rejection is its major daily support at $0.15, an area reinforced by a crucial trendline.

Notably, the trendline has acted as both supply and demand zones for Dogecoin as it trades within the descending triangle. As a result, the market watcher suggested that the meme coin could find solace at the trendline before pursuing its subsequent price action.

Surge To $2 Still In Play

Meanwhile, despite emerging analysis that DOGE could fall as low as $0.08131 before a price reversal, prominent market speculator Ali Martinez has suggested a possible rebound from this level to $2.

In a recent tweet, he asserted that Dogecoin could surge a staggering 1,044% from its current market price, citing a sustained trend within its multi-year ascending channel.

"If the lower support line of the wedge holds at $0.16 and #dogecoin bounces from this area, we can expect a surge to the 1.272 Fibonacci extension at $2.77."

However, Martinez's analysis highlighted that a break below the ascending channel could spark a massive downside. An accompanying chart shows a possible 99% capitulation to $0.00168.

DOGE trades at $0.1741 at press time with a market cap of $26 billion.