Dogecoin Price At Key Support: Drop to $0.10 Possible?

Dogecoin (DOGE) analysis shows that the meme coin has been testing the bottom boundary of a key price channel. The rangebound movement can be defining for Dogecoin’s short-term trends.

Dogecoin price has been within a structured channel for years, as historical data indicates. Analyzing trading patterns shows that every time Dogecoin neared 0.150 support, it resisted further slide and reacted positively to produce a bounce each time.

Maintaining Above $0.16 Could Trigger Strong Rebound

At press time, Dogecoin is trading close to $0.1594. Holding above the $0.150 support level is extremely important. As price bounces happened almost every time there was a hold above.

Analyst Ali Martinez predicts that sustaining above $0.16 may give traders the confidence to buy a strong rebound.

Recent trading volume fluctuations and market cap analyses reinforce this perspective, showing interest in these price levels has increased. Dogecoin would follow the same pattern to pull off these levels, a reversal from previous patterns in which Dogecoin has seen huge recoveries.

Some market analysts say Dogecoin whales have accumulated 1.7 billion $DOGE ($298m) in the past 72 hours, signaling bullish sentiment ahead of a potential Dogecoin ETF approval. This is even though it has dropped 20% in a week, falling from $0.22 to $0.17.

If DOGE reclaims $0.2 before the ETF approval, the expert sees a possibility that it could go to $0.5 due to the liquidity of ETFs and Elon’s bullishness on the meme crypto.

Dogecoin Price Prediction to $0.16

Dogecoin charts suggest a recent sharp decline in a bearish channel. This is the channel through which the price has been consistently going down. This shows the strong bearish sentiment of the market.

Furthermore, the price has just left a short consolidation zone and is now plummeting again. This confirms that the decreased momentum remains powerful.

The RSI value is currently 27.08, which is very low in the oversold territory. Therefore, at this level, the asset might be undervalued, and there is a possibility of a reversal or stabilization in the price in the short run.

However, if not in the oversold region, it can also suggest strong bearish momentum left behind the oversold area. This means a recovery might be delayed.

We can see the price hovering just about above the $0.15927 mark, which is close to the current price of $0.15930. At this point, the distance to the $0.16 hurdle screams that breaking through this wall is a walk in the park.

To move on past that hurdle would probably take a sea change in market sentiment or a massive influx of buying pressure. Although the technical indicators show that it is not easy, a level of $0.16 is a close distance.  Oversold conditions are reasons to hope to reach this price.