An analyst from the More Crypto Online YouTube channel recently discussed Dogecoin’s recent price action and warned of the possibility of another dip.
He pointed out that Dogecoin has been stuck in a sideways consolidation phase over the last ten days. After the major February 3 selloff, the price briefly recovered but failed to break above the key $0.34 resistance level.
According to the analyst, this action has trapped the price in a stagnant range, with no significant upward movement yet.
Amid the ongoing sideways movement, the analyst suggested a potential for a new low. He explained that the current price action indicates Dogecoin could still be following an ABC structure.
If this structure holds, the C-wave would typically end below the A-wave low, meaning a dip below the recent low of $0.238 could be likely. At press time, Dogecoin is trading at $0.256, showing a modest 0.83% gain on the day.
Key Levels to Watch for Dogecoin Bullish Thesis
The analyst emphasized that the bullish outlook remains intact as long as Dogecoin holds above the $0.22 level. This price point aligns with the 78.6% Fibonacci retracement, and staying above it would support the ongoing bullish thesis.
However, a break below $0.22 could invalidate the current bullish scenario, with the next significant invalidation level around $0.204.
What Comes Next for DOGE
Meanwhile, if Dogecoin remains above this critical support level, the market could recover and begin the third wave of a bullish move.
Specifically, the analyst noted that for Dogecoin to confirm a reversal and start an upward trend, it would need to break above the first key signal line at $0.293. A more significant signal of a trend change will come if the price breaks above the upper signal line at $0.342.
Overall, the analyst mentioned that the broader market, including Dogecoin, has been moving sideways recently, with more bearish days.
While some coins like Solana have seen sharp corrections, Dogecoin has held its ground relatively well. However, with the potential for another dip, investors are advised to monitor the $0.22 support to maintain a bullish outlook.
Moreover, Dogecoin’s bull comeback would hinge 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 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.
