Dogecoin (DOGE) experienced significant volatility on Monday, with its price plunging to $0.3800 after starting the day at $0.4673.
This decline closely mirrored Bitcoin’s drop, as the leading crypto revisited its previous lows at $94,000 during the same period. Now, DOGE is trading at $0.4057, marking an 8.81% decrease in the past 24 hours. In its overall weekly performance, Dogecoin is witnessing a more modest decline of 2.36%.
Dogecoin Road to $0.47
Amid this fluctuation, pseudonymous analyst MastaCrypta presented a four-hour chart, revealing that Dogecoin has been trading within a rising channel characterized by higher highs and higher lows. This pattern suggests a broader upward trend despite recent setbacks.
The analysis identified immediate resistance near $0.42674, aligned with the channel’s upper boundary. On the downside, immediate support was noted at $0.37143, where the lower boundary provides a crucial base for price action.
The chart also highlighted a potential upward target of $0.47, aligning with the channel’s trajectory. Essentially, analyst MastaCrypta seeks to highlight that the recent dip in Dogecoin is an opportunity to buy low as a rebound to near $0.5 could be imminent.
Bearish Patterns Raise Concerns
In contrast, another TradingView analyst, Ripplayer, highlighted a bearish double-top formation in Dogecoin’s price action. This pattern and a breakdown of key support levels have raised concerns about further declines. The analysis proposed a downside target between $0.29 and $0.30, contingent upon a volume-backed breakdown.
The analyst emphasized the importance of a retest following the breakdown to confirm the bearish setup. Should the scenario unfold as projected, the entry point would lie near the retested support.
Essentially, while others are bullish, this projected downward trajectory underscores the uncertainty in Dogecoin’s immediate outlook.
Historical Trends Provide Optimism
Meanwhile, some analysts have cited historical cyclical behavior to argue for a bullish outlook for Dogecoin. For instance, Ali Martinez has pointed out similarities between the current price action and past cycles in 2017 and 2021.
During these periods, Dogecoin exhibited strong rallies following Bitcoin’s halving events, often interrupted by sharp corrections before resuming its upward trajectory.
Martinez suggested that the current price range between $0.30 and $0.40 could offer an accumulation opportunity. Drawing parallels with prior cycles, he forecasted a potential long-term target of $18 for Dogecoin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
