Dogecoin Faces Crucial Support Test, 157% Rally Possible

Dogecoin (DOGE) is currently at a pivotal point, with strong support levels identified between $0.139 and $0.17. This range is crucial for determining the next direction of the cryptocurrency's price movement. Analysts have highlighted that maintaining above $0.139 is essential for sustaining bullish momentum. Kevin, a prominent crypto analyst, emphasized that DOGE received a "weekly demand candle" at this support level, which is described as the "last line of bull market support."

Technical indicators are also resetting, which could signal a shift in market sentiment. The Weekly Stoch RSI has already fully reset, while the 3-Day MACD is approaching a reset state. The Two-Week Stoch RSI may need about another month to align with the lower region. These resets often precede price recoveries as selling exhaustion gives way to renewed buying interest.

Another analyst, Carl Moon, predicts a significant upside if DOGE breaks out of its current pattern. According to Moon, if Dogecoin closes above $0.185 on the daily chart, it could confirm a structural breakout. Following such a breakout, Moon projects a 157% rally, which would take DOGE to approximately $0.434, nearly matching its previous high from earlier this year.

Whalesdesk, another analyst, identified strong support for Dogecoin between $0.16 and $0.17. This support zone has prevented further downside movement and could serve as a launching pad for higher prices. Whalesdesk outlined a more ambitious price target, suggesting DOGE could reach a four-year high of $0.60. Before reaching this level, the cryptocurrency would need to overcome resistance areas at $0.30 and $0.45.

On-chain data shows growing whale activity supporting the bullish outlook. Large holders have been accumulating DOGE at current price levels, which historically has preceded major price movements. The Dogecoin network has seen increased user engagement in recent weeks, with daily active addresses growing, indicating more people are transacting with DOGE tokens. Transaction volumes have also increased on the network, reflecting growing demand for the cryptocurrency.

Dogecoin developers continue working on network improvements. These upgrades aim to enhance transaction speed and reduce fees, potentially supporting wider adoption and use cases. The recent price action shows DOGE finding a low at $0.1646 before attempting a recovery. The price has moved above both the $0.1680 level and the 100-hourly simple moving average, suggesting short-term strength.

A bullish trend line has formed with support at $0.1680 on the hourly chart. If this support holds, it could provide a foundation for further gains toward the $0.1755 and $0.18 resistance levels. If Dogecoin fails to break above $0.1755, it could face another decline. The next support levels would be $0.172, $0.168, and the critical $0.165 area. A break below $0.165 could send the price toward $0.162 or even $0.155.

The overall market has experienced some fluctuations following policy decisions. These macroeconomic factors have influenced investor sentiment across digital assets, including Dogecoin. Kevin tied DOGE’s prospects to Bitcoin’s performance, noting that if Bitcoin holds above $70,000, the outlook for Dogecoin remains positive. This highlights the connection between Bitcoin’s movements and the broader altcoin market.