Dogecoin (DOGE) has experienced a prolonged downtrend since late May, falling from $0.25 to hovering around $0.18 before recently dipping below this mark and rebounding near $0.17. This $0.17 price point serves as a critical daily support level within a descending channel that has been capping Dogecoin's price action since December 2024. The channel's upper resistance has repeatedly halted Dogecoin's rally attempts, but analysts like MMBTrader suggest this pattern may soon end. A successful breakout above the $0.205 and $0.23 resistance levels could trigger a strong upward momentum toward $0.3 and potentially reach bullish long-term targets of $0.75 and $1 if Dogecoin closes above $0.40 convincingly.
However, Dogecoin's recent price crash was intensified by a broad crypto market selloff and external factors, including a public dispute between former US President Donald Trump and Elon Musk that shook market sentiment. Dogecoin broke multiple minor support points in this decline and now approaches a crucial $0.16 support level, as highlighted by crypto analyst The Alchemist Trader. Holding $0.16 is essential to prevent further price deterioration and enable a potential bullish continuation toward $0.48, a level representing a nearly 194% gain from current prices. Technical indicators such as breaking above the 200-day moving average and short-term descending trendline support this potential recovery, although bearish factors currently exert downward pressure. Trading volume has notably contracted by 50% despite a modest price rebound, indicating weak buying conviction.
Overall, Dogecoin’s near-term outlook depends on maintaining support around $0.17 and $0.16 and breaking key resistance levels within the descending channel. Failure to hold these supports could lead to more significant losses, while a confirmed breakout may catalyze substantial price gains.