Dogecoin is now at a crucial moment in its market cycle, and in line with a recent evaluation by crypto analyst Ali Martinez, the subsequent move could make or break all of it. In a post on the social media platform X, Martinez explained that Dogecoin’s ability to embark on a rally hinges on whether it might hold above an important support zone around $0.16.
His forecast is grounded in a technical study of Dogecoin’s long-term price movement, which shows the meme coin has maintained a consistent uptrend channel since 2015, bouncing between support and resistance levels during each cycle.
Eight-Yr Uptrend Channel On Dogecoin’s Weekly Candlestick Chart
Ali Martinez’s bullish outlook relies on his technical evaluation of Dogecoin’s weekly candlestick chart. The analyst noted that DOGE has been locked inside an ascending channel since 2015, defined by higher highs and better lows over time.
This structure has repeatedly pushed the coin to latest all-time highs during bullish periods while also defining the boundaries for corrections in bear markets. The channel itself is split into two halves by an upward-sloping trendline that has served as each support and resistance.
Martinez believes that the identical setup could also be taking shape again. Dogecoin’s price met resistance near $0.48 in December 2024 and has since corrected downward over the past three months. Because it stands, the meme coin is now trading near the lower trendline of the upward channel, and its response here could make or break its price trajectory for the remaining of the 12 months.
A Bounce From $0.16 Could Trigger A Surge Toward $14
The lower support trendline has been crucial in Dogecoin price rallies, with the most recent being its role in Q4 2024. Back then, DOGE rebounded on the lower trendline, which was situated across the $0.09 mark and went on the following rally that saw its price increase by about 430%. On the time of writing, the lower trendline support, which is imagined to make the next high, is now situated across the $0.16 price level.
The optimal move is for Dogecoin to rebound at this lower trendline, and Martinez emphasized that holding above $0.16 could serve because the launchpad for a significant rally. If the support level holds, he anticipates that Dogecoin could begin ascending toward the mid-range of the channel, which is estimated to be around $2.5.
A move to $2.5 would send Dogecoin trading at latest all-time highs and switch the mid-range trendline right into a support level. Continued strong momentum would then push Dogecoin to ultimately reach the upper boundary of the channel at roughly $14. Nonetheless, there might be corrections in between these movements.
The downside of failing to carry this support is just as significant. Falling below $0.16 would cause the support trendline to shift downwards. In that case, DOGE might be vulnerable to deeper losses and prolonged consolidation. On the time of writing, Dogecoin is trading at $0.1754, up by 3.5% prior to now 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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