By Nermeen Nabil Khear 
TLDR
- Dogecoin experienced a 40% price drop to $0.22, marking its lowest point since early 2024, before rebounding to $0.25
- Technical analyst Trader Tardigrade identifies $0.22 as a key support trendline, suggesting this could be the cycle bottom
- Historical analysis shows Dogecoin typically rebounds strongly after 50%+ pullbacks, with Tardigrade predicting a potential rise to $2
- Analyst Asif.eth identifies an Elliott Wave ABC correction pattern, recommending accumulation between $0.24-$0.18 with a stop-loss at $0.16
- The recent price stabilization and oversold RSI indicators point to a potential recovery, though success depends on maintaining support levels
The cryptocurrency market has experienced substantial volatility in early 2025, with Dogecoin (DOGE) dropping nearly 40% to reach $0.22 before showing signs of recovery. This price point represents the lowest level for the popular meme cryptocurrency since November 2024.
The sharp decline occurred during a broader market sell-off that affected various digital assets. However, technical analysts have identified several indicators suggesting this price level could mark a bottom for the current cycle.
Trader Tardigrade, a respected cryptocurrency analyst, has highlighted the importance of the $0.22 price point. According to their analysis shared on social media platform X, this level coincides with a key trendline that has influenced Dogecoin’s price movements throughout 2024.
#Dogecoin has hit a major Support Trendline on the weekly chart
A rebound from this point is anticipated$Doge may have reached its lowest point before the next Surge. pic.twitter.com/u1wkK7nE8q
— Trader Tardigrade (@TATrader_Alan) February 8, 2025
The price has since rebounded to $0.2561, representing an approximate 16% recovery from the recent low. On-chain data from IntoTheBlock confirms increased buying activity around this support level, suggesting market participants view this as a potential accumulation zone.
Historical data reveals a pattern in Dogecoin’s price movements, where substantial pullbacks typically precede strong rallies. Trader Tardigrade’s analysis identified three major previous corrections: a 59.76% decline, a 56.2% drop, and a 58.25% decrease. Each of these corrections was followed by a recovery phase.
The most recent correction appears to follow this historical pattern. After the last comparable pullback, Dogecoin experienced a 23,000% increase, ultimately reaching its all-time high of $0.73. Based on these patterns, some analysts project potential targets as high as $2, though such predictions should be approached with caution.
Another prominent analyst, Asif.eth, has identified an Elliott Wave ABC correction pattern in Dogecoin’s recent price movement. This technical analysis structure suggests the cryptocurrency has completed its corrective phase within a critical support range between $0.24 and $0.18.
$DOGE is HUGELY DISCOUNTED Right now & Here is Why
Watch this TA & Analysis Video, Make sure to give a follow @asifeth #Dogecoin #DOGE #dogememe #dogecrypto pic.twitter.com/f01Nq6c1gt
— asif.eth (@asifeth) February 6, 2025
The identified support zone represents what Asif.eth describes as a “huge supply turned into demand zone.” The analyst emphasizes the importance of maintaining the $0.16 price level as a critical threshold, suggesting that breaking below this point could invalidate the bullish outlook.
Technical indicators provide additional context for the current market situation. The Relative Strength Index (RSI) has entered oversold territory, which traditionally signals a potential buying opportunity. This technical signal aligns with Fibonacci retracement levels, which show the current price corresponding with historically important support zones.
Market data indicates that Dogecoin has maintained relative stability within the $0.25-$0.40 range despite recent market turbulence. This price action suggests underlying support from long-term holders and interested buyers at these levels.
Several external factors could influence Dogecoin’s future price movement. The potential integration of Dogecoin into X’s payment system remains a topic of discussion within the cryptocurrency community. Such implementation could provide real-world utility for the digital asset.
The broader meme-based cryptocurrency market has grown substantially, with total valuations approaching $100 billion. This expansion of the sector could contribute to increased interest in established meme cryptocurrencies like Dogecoin.
Current market data shows Dogecoin trading around $0.25, representing a 4.06% decrease over the past 24 hours. Trading volume remains consistent with historical averages, suggesting continued market participation despite the recent price decline.
On-chain metrics indicate that buying pressure has emerged at the recent support level. However, sustained recovery depends on maintaining price levels above key technical support zones identified by analysts.
The $0.24-$0.18 range has historically served as both support and resistance, making it a crucial area for price action. Traders and analysts emphasize the importance of the $0.16 level as a critical threshold for maintaining bullish market structure.
Recent market data demonstrates that institutional interest in cryptocurrency remains strong despite price volatility. Trading volumes across major exchanges show consistent activity levels, indicating ongoing market participation.
Technical analysis of daily and weekly timeframes suggests the formation of potential reversal patterns. These patterns, combined with oversold technical indicators, have led some analysts to recommend accumulation at current price levels.
The cryptocurrency was trading at $0.25 at press time, with 24-hour trading volume maintaining steady levels across major exchanges.
The post Dogecoin (DOGE) Price: Multiple Technical Indicators Align at Support Level appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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