Analyst Reveals The Channel That Is Holding Price Back From Reaching $0.3
Dogecoin’s recent price movement has been characterized by a prolonged downtrend from $0.25 since late May. For most of the last seven days, Dogecoin hovered just above the $0.18 mark, unable to generate any meaningful upward movement. However, within the last 24 hours, the price dipped below this level, momentarily breaching support before rebounding off the $0.17 zone.
The $0.17 price point is significant for Dogecoin, as it serves as a daily support level within a descending channel that has been suppressing the meme coin’s price action since December 2024.
Channel Suppressing Dogecoin Price, But Not For Long
According to crypto analyst MMBTrader, Dogecoin’s price action has been confined to a descending channel that has consistently limited every upward attempt since the start of the year. The resistance along the upper boundary of this channel has repeatedly rejected Dogecoin’s rally attempts, forcing it back into a lower high each time. However, the analyst believes this pattern may be nearing its end.
The chart shared by MMBTrader shows Dogecoin is now on the path to testing the upper resistance of the descending channel once again. If the memecoin succeeds in breaking this pattern this time, it could trigger a heavy pump toward higher price levels. However, the current price action indicates that Dogecoin must first hold above the support level around $0.17.
Away from this support level, Dogecoin also needs to break above the immediate resistance at $0.205 with enough conviction. Beyond that, a push towards $0.23 will be enough to break above this descending channel.
Upside Targets Stretch Toward $0.3 And Beyond
The chart above shows a speculative trajectory outlined in green. This trajectory illustrates a breakout above $0.205 and $0.23, followed by a march toward the support-turned-resistance level of $0.3. However, the breakout scenario hinges on Dogecoin clearing both the channel resistance and holding above the significant support at $0.17.
The current setup indicates that a successful breakout above the descending channel could signal the beginning of an intense momentum wave. If this breakout is successful, the analyst points toward bullish long-term targets of $0.75 and $1, should the price manage to close firmly above the $0.40 zone.
In the meantime, Dogecoin’s journey to new all-time highs looks very weak. At the time of writing, Dogecoin is trading at $0.1852, up by 5.2% in the past 24 hours. Trading volume is approximately $1.01 billion, representing a 50% reduction within the same timeframe. This divergence between price recovery and volume contraction indicates that buying conviction is still weak.
Even so, Dogecoin’s support around $0.17 continues to hold firm. As long as Dogecoin is trading above this price level, a break above the descending channel is still in play.
Featured image from Unsplash, chart from TradingView
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