As Dogecoin (DOGE) retests key multi-year support, some analysts are predicting a bearish outlook for the largest memocoin by market cap, warning that its bottom may not have been reached yet.
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Dogecoin targets lower levels
On Thursday, Dogecoin erased most of its early-week bounce and retested the $0.090 area again. Market Monitor Rect Capital Highlight DOGE’s recent performance, warning that the price correction may not be over yet.
As he explained, the leading memecoin lost its overall multi-year uptrend in November, when it closed the month below its bullish support that had held since early 2023.
Therefore, Dogecoin has officially confirmed its total volume Downtrendwhich began to develop after the cycle peak of $0.484 during late 2024. The analyst noted that historically, the cryptocurrency has not retested the overall downtrend line until the price is ready to break and retest it after a breakout.
Accordingly, he warned that memecoins are “unlikely to test this overall downtrend any time soon.” Currently, DOGE is at the bottom of its range, which is also a major reaction zone that served as resistance before turning into support in 2024.
According to Rekt Capital, previous bear market performance He notes that Dogecoin will likely lose the current area as support over time, but noted that the price may see a recovery as part of a range-bound group in the meantime.
If history is any indication, the price will likely fall well below the overall downtrend and instead reject from the high resistance area (red zone). The uptrend may then turn up, but it is still much lower than the downtrend itself.
The analyst concluded that a short-term relief rally remains possible as long as the current level remains stable, but warned that it could be lost in the coming months before bottoming out at much lower levels.
The case for DOGE price
Despite the bearish outlook, other market watchers shared a more optimistic view of the memecoin. Tardigrade Trader Analyst recently He pointed out That Dogecoin may have already hit its bottom and could be preparing for its next bullish wave.
According to the chart, the cryptocurrency is retesting historical support for the third time. This trend line has held for about ten years, and its retest has previously preceded significant price rises.
The first touch in 2017 led to a massive rally towards the 2018 all-time high (ATH) of $0.017, while the second retest in 2021 was followed by a massive rally towards the current ATH of $0.731.
Now, Dogecoin is testing this area again and could start to recover in the short to medium term before prices expand significantly to new highs in the medium to long term, if it follows its past performance.
Likewise, the analyst too Argue That the overall structure of DOGE remains intact, regardless of the short-term price action. Last week, he confirmed that the memecoin’s performance during each of the ATH rallies “tells the same story — because Doge makes its own rules.”
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He stressed that the cryptocurrency is currently similar to ATH’s previous performance, as it is approaching the end of a falling wedge pattern that preceded a significant price expansion to new highs during previous rallies.
As a result, he considers Dogecoin to be in an “initial accumulation window” before it hits the moon.
Featured image from Unsplash.com, chart from TradingView.com
