Emily Walker
Crypto analyst TradingShot has observed a trend in Dogecoin’s pricing that suggests it may soon bounce back above the $0.3 mark. This comes as a hopeful outlook for Dogecoin, which has struggled recently due to the overall downturn in the cryptocurrency market.
Breakdown of the ‘Channel Down’ Pattern Indicating Potential Bounce for Dogecoin
In a post on TradingView, TradingShot examined a pattern they call ‘channel down,’ suggesting that Dogecoin could rebound above $0.3. The analyst noted that DOGE has been trading in a two-month downward trend, which might serve as a larger Bull Flag during the current bullish cycle. They also pointed out that Dogecoin has recently seen significant selling pressure, reaching its 200-day Moving Average for the first time since October 25, 2024.
Conversely, TradingShot mentioned if this movement represents just a temporary downward trend of one day, then Monday’s price drop might represent a low point within the pattern’s downward trajectory. He referred to an earlier low from December 20, 2024, which led to a rebound towards the 0.786 Fibonacci retracement level.
As Dogecoin enters oversold conditions, the analyst predicts a bullish movement aimed at reaching $0.3800, slightly under the 0.786 Fibonacci level. This gives some hope for Dogecoin, which suffered a 40% drop, hitting lows of $0.20 due to a sell-off trend in the crypto market over the weekend.
Dogecoin has since shown some recovery after a halt on tariffs by the US, Mexico, and Canada but remains under the critical psychological price point of $0.30. A rise above this level could signify a renewed bullish phase for DOGE and strengthen its upward momentum.
Upcoming Bullish Movement Expected for DOGE
In a recent update on X, crypto analyst Kevin Capital expressed that he anticipates Dogecoin is on the verge of starting its next upward movement. He believes that DOGE has finished the second significant correction within its current bull phase. The trends appear to mirror those of the last cycle, despite a different percentage decline.
Kevin Capital mentioned that should the price of Bitcoin progress positively, Dogecoin’s upcoming leg should kick off shortly. Another analyst, Trader Tardigrade, pointed out that Dogecoin’s MACD indicates a bullish crossover on its 4-hour chart, suggesting that DOGE is gaining momentum for a possible reversal into a bull run.
Currently, Dogecoin is trading at about $0.26, marking a 13% increase in the last day, based on CoinMarketCap data.