Amid the Dogecoin push to lower prices, an analyst has identified demand zones that could be possible rebound areas and a buying opportunity.
Notably, Bitcoin rebounded slightly after dipping to $80,000 last week, moving the broader crypto market with it. Today’s 2% surge has seen Dogecoin replicate a similar momentum, bouncing from $0.1656 yesterday.
Nonetheless, the leading meme coin has struggled recently. With its fourth consecutive negative candle yesterday, Dogecoin corrected 30% the previous week.
Meanwhile, a TradingView analysis has identified strong support for where Dogecoin could possibly rebound. The demand walls also serve as buying areas for enthusiasts looking to dollar-cost average (DCA) their DOGE positions or start accumulating the asset.
Analyst Highlights Buying Zones
With every dip comes a buying opportunity, especially for high-caliber assets tipped to see higher prices in the long term. Pseudonymous analyst “TheGift94” has highlighted demand zones where Dogecoin could find solace amid the intense downward pressure.
In a TradingView analysis, he identified three zones, which he tagged as “buying demand zones.” His outermost support stands at $0.20, an area that Dogecoin has already breached. The meme coin’s 13% correction yesterday to close at $0.1678 ensured it desecrated the zone.
Meanwhile, the analyst highlighted the second and final demand zones at $0.16 and $0.13, respectively. Notably, Dogecoin would have to correct 25% to reach the final support area, which served as a base for the asset’s northward trajectory in November.
Lower Before the Next Bullish Round?
Moreover, MMBTtrader shares a slightly more bearish outlook. The analyst suggested in his TradingView analysis that Dogecoin could breach all three aforementioned supports to $0.08131, a price level last seen in August.
He noted that the over 53% dump could set in after Dogecoin lost major daily support at $0.185. However, he predicted that the prominent meme coin would pump from the global support at $0.08131 to reclaim $0.40.
Meanwhile, market watchers have maintained a bullish price outlook for Dogecoin despite the downsides. Analysis suggests that DOGE still has a window to surge to $6.24 and $8.5 before the end of this bull cycle.
In the meantime, Dogecoin trades at $0.1728 with a market cap of $25 billion.
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.
