Dogecoin now rests on a crucial support area, with analysis projecting its next price action if it continues to hold the current level.
Market analyst DeGRAM, who claims to have a 90% accuracy in his Telegram channel, identified this current trend in a TradingView analysis on Monday. His prediction comes as Dogecoin follows a broader market correction, which has seen it retrace by nearly 9% since the start of this week.
The leading meme coin by market cap reached an intra-week low of $0.2308 today but has since rebounded. Interestingly, DeGRAM’s analysis suggests Dogecoin could see higher prices depending on its reaction to the current price level.
Dogecoin Reaches Support
The analysis highlighted that Dogecoin has now dropped to the $0.2400 support level following its earlier sideways trend. Notably, DOGE consolidated around the support in early September before its uptick to $0.3074, aligning with the resistance of a rising channel structure. After this, DOGE slipped to the current support region as the broader market corrected.
The analyst suggested that the meme coin could recover to upper levels if it holds the current support area. He expects the momentum from the current support to spark a rebound, retesting a notable resistance trendline.
The resistance resides around the $0.2860 price mark, representing a 19.8% rally from its current price of $0.2387. DeGRAM noted that a rally to this area would confirm bullish continuation for DOGE, opening the path for higher prices.
Positive Fundamentals to Support Rebound
Moreover, the analysis shows that recent fundamental developments support this rebound. It emphasized that Dogecoin sentiment is improving, as the recent 25-basis-point interest rate cut by the Federal Reserve favors risk assets.
The commentary also highlighted the inflow to crypto investment products in the previous week as a strong fundamental catalyst. While Bitcoin led the $1.96 billion influx, altcoins also saw massive investor traction, and the analyst stated that this shows demand.
There have also been positive developments from the Dogecoin spot ETF front. For instance, Swiss-based 21Shares recently registered its DOGE ETF on the Depository Trust & Clearing Corporation (DTCC), bringing its launch one step closer.
As a result, the analyst believes that these factors would support Dogecoin’s rally to $0.2860. However, he stressed that this run would only materialize if bears do not push DOGE below the $0.2400 support level.
Aligning Dogecoin Bullish Expectations
Meanwhile, Ali Martinez also shares a similarly bullish outlook on Dogecoin. He revealed in a recent tweet that this is a great zone to buy Dogecoin, as a breakout to $0.50 is imminent.
Supporting this Dogecoin prediction is its bounce from the support region of an inverted descending triangle in the 12-hour timeframe.
He expects a bullish continuation from the current level, breaking past the upper resistance of the structure to the 1.618 Fibonacci extension at $0.50. This would mark a 109.4% rally from the current market price.
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