Dogecoin price crashed alongside the crypto market when the Bitcoin price dropped hard toward $100,000. This was spurred by a very public dispute between US President Donald Trump and billionaire Elon Musk over differences yet to be revealed. As the meme coin’s price tumbled, it broke through multiple minor supports, showing that the bears have taken charge once more. This puts it in a perilous position as it now sits close to an important support level.
Why Dogecoin Price Must Hold $0.16
Crypto analyst The Alchemist Trader has revealed that $0.16 is the most important level for the Dogecoin price right now. The analyst points this out in a TradingView post showing how the meme coin has been fairing recently, and how it had moved through various important levels.
The first level that the Dogecoin price had crossed earlier in the week was the 200-day moving average (MA). This 200-day moving average was the dynamic support for the altcoin, and moving above it was part of the reason that the meme coin’s price had seen a small recovery at the start of the week.
At this point, there was a major accumulation going on as the altcoin seemed to be on a discount after a market drawdown. In addition to this, market sentiment surrounding the Dogecoin price had moved into positive territory, showing that buyers were returning to the table.
However, this did not last long because the Bitcoin price crash on Thursday shook the market, and Dogecoin saw its price plummet by another 10% in less than one day. This brought it below the $0.18 support, thereby pushing it toward a lower support level. The $0.17 support had held on, but with weak support at this level, the next major support level falls further downward.
The crypto analyst highlighted that the important level now to watch is actually the $0.16 support. He explains that this is actually critical for a bullish continuation, and a failure to hold could cause a price crash. However, if the bulls are able to successfully maintain this support, then the probability of an uptrend increases with the higher lows that the market has seen, and it could rally back to $0.48.
Other bullish technicals that have appeared for the Dogecoin price are the fact that it had previously broken above a short-term descending trendline. Such breakouts are usually bullish for a crypto asset, if all things remain equal, save for extenuating circumstances like a Trump-Musk feud tanking the market.
“This breakout, coupled with sustained strength above the 200-week MA, may set the stage for a significant move to the upside,” the crypto analyst wrote. He further added that: “The ultimate technical target remains the all-time high zone near $0.48, which represents a potential 194% gain from current levels.”
Featured image from Dall.E, chart from TradingView.com
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