Dogecoin (DOGE), the leading meme cryptocurrency, has returned to a pivotal support level at $0.168 raising alarms in the crypto community. A weekly close below this line could pave the way for a 30% correction, according to analyst Ali Charts, while bullish technical patterns hint at a possible 350% breakout if support holds.
$0.168: The Line Between Bounce or Breakdown
DOGE has already dropped nearly 30% from its mid-May highs, retesting the crucial $0.168 support zone a level that also held firm in April. A decisive breakdown could be catastrophic. As per Ali Charts, if Dogecoin loses this level, it could fall into a price “gap area” with minimal historical buying interest, making swift declines more likely.
The crypto market is now in a wait-and-see mode. Weekly closes near this line are being closely scrutinized, as they could determine DOGE’s short-term trajectory.
Technical Setup: Cup and Handle Offers Hope
On the bullish side, Dogecoin is reportedly forming the handle of a multi-year cup-and-handle pattern, a rare and historically bullish chart structure. The symmetrical triangle’s lower boundary coincides with current prices, adding more weight to the $0.168 level.
Should DOGE break above the triangle’s upper trendline, analysts project a price target near $0.75, based on the 1.618 Fibonacci extension of the cup’s depth. This would represent a massive 350% rally from current levels.
Bearish Indicators Mount
Despite bullish possibilities, momentum indicators aren’t providing much optimism. The 50-day moving average recently fell below the 200-day, forming a death cross, a classic bearish signal. The MACD line continues to diverge below its signal line, signaling downward momentum.
Meanwhile, the Relative Strength Index (RSI) is at 42 and falling below the neutral 50 level, suggesting selling pressure outweighs buying interest.
ETF Ruling Looms Large
A major catalyst could arrive on June 15, when U.S. regulators are expected to decide on a spot Dogecoin ETF application. Approval could usher institutional money into DOGE and serve as a much-needed bullish jolt. A delay or rejection, however, might push Dogecoin into deeper declines.
Market Sentiment and Forecast
According to CoinCodex, Dogecoin has recorded 13 green days out of the last 30, with daily price volatility averaging 10.57%. Their projection places DOGE at $0.20 by July 18, indicating a potential 17% upside from current prices. However, market sentiment remains neutral, and on-chain indicators are not showing clear bullish or bearish divergences.
What to Watch This Week
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$0.168 support — Watch the weekly close
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Volume activity — Indicates conviction
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ETF decision — Scheduled for June 15
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Break above trendline — Needed to confirm breakout to $0.75
Whether Dogecoin rebounds or slides deeper, this week could prove pivotal. With technicals tightening and regulatory news pending, DOGE is at a make-or-break moment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
