Dogecoin Faces Critical Support at $0.20: Ping-Pong Pattern Signals Hope

As the crypto market balances near $3.2 trillion and Bitcoin holds at $98,000 levels, meme coins are taking a significant hit. Falling from the recent peak of $100 billion to $73.80 billion, the meme coin market cap has dropped by nearly 36%.

Dogecoin has fallen to $0.26, currently holding a market cap of $39.56 billion, accounting for more than 50% of the meme coin segment. With the short-term volatility turning extremely bearish for meme coins, will Dogecoin tank under the $0.20 psychological mark?

Dogecoin Eyes Reversal in Ping Pong Style

In a recent X Post by Trader Tardigrade, the crypto analyst highlights a potential reversal run in Dogecoin. Based on the 8-hour time-frame analysis, Dogecoin is ready for a ping-pong reversal after a double-top reversal.

Dogecoin is presenting a potential ping-pong pattern formation with a lower price rejection from the $0.20 psychological mark. With the 8-hour RSI line in the oversold region for the second time teases a potential bullish reversal. With the ping-pong style, the Dogecoin price could re-challenge the previous swing high at $0.41.

Dogecoin in a Falling-Wedge Pattern Against Bitcoin

On a bigger time-frame, the monthly price analysis of Dogecoin against Bitcoin reveals a falling-wedge pattern. After three consecutive bearish months against Bitcoin, Dogecoin shows significant weakness.

However, a bullish breakout of the falling-wedge pattern will likely result in a parabolic rise to a potential new all-time high. On the flip side, a bearish continuation will likely test the previous swing low near 0.0000015 BTC.

Is a Parabolic Bull Run on the Horizon?

While the short-term analysis hints at a potential recovery, Master Kenobi in his recent X post highlights a potential bull run based on the historic price trend. Kenobi, the crypto analyst, divides the Dogecoin price trend over the past year into two different pumps.

The first started on February 5, and the second on August 5 in the year 2024. The first pump resulted in a 3x rally. However, the August 5 crash wiped out all the bullish gains.

Historical Patterns: A Tale of Two Pumps

Since then, Dogecoin rallied another 6x with the last night’s crash, erasing 57% of the recent gains. In both conditions, the bullish recovery has been driven by high momentum.

In such a case, the recent lower price rejection in Dogecoin hints at a new recovery run. In the first possible scenario, Dogecoin could repeat last year’s pattern and reach the peak by the end of February.

In the second scenario, a repeat of the August phase could occur, where an extended consolidation results in a quick high-momentum bullish rally. In either of the cases, Dogecoin is likely to maintain a sideways or bearish shift for the next few months before starting a parabolic rise with an altcoin season.