A new technical analysis shared by crypto analyst BitGuru on social media platform His chart shows a familiar structure forming at a major support level, which served as the starting point for the previous rally this year. The price action currently unfolding is similar to this previous setup, with Dogecoin prepare for further recovery It will rise above $0.2.
Dogecoin returns to key support zone
Dogecoin has been trading between $0.13 and $0.15 for the past few weeks with no clear path to bullish price action. This recent price trend is a continuation of the economic downturn that began at the $0.3 price level since mid-September.
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especially, technical analysis of Dogecoin’s daily candlestick timeframe chart shows that the cryptocurrency is currently located at a key historical support level, the same area that drove past rallies. This support is shown on the chart as between $0.139 and $0.141, and is the lower end of a broad accumulation zone where price repeatedly stabilizes before surging.
Despite the recent slump in the overall market, The price support range is maintained. December price action created several transition candles on the daily timeframe chart. This created a higher low compared to the November breakdown that caused Dogecoin to fall below $0.135.
Dogecoin daily candlestick chart. Source: @bitgu_ru On X
Another notable feature highlighted by analysts is the tight compression that is forming around the Dogecoin candlestick. The chart shows a series of narrow moves, indicating that selling momentum is fading.
BitGuru interpreted this to mean seller exhaustion, meaning that the Dogecoin price is no longer exhibiting the intense downward pressure seen in November. This kind of range contraction is expected to be the final stage of a downtrend, with buyers beginning to take back control.
Buyers start to enter, next target is mid-price range
Early signs of buyer strength are now being seen within this compression zone. This is reflected in the price trend over the past 24 hours, with Dogecoin rebounding from its intraday low of $0.14 and rising 4.1%. This rally is the first meaningful rebound from buyers after several days of bearish market.
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The arrow projected on BitGuru’s chart is Midrange area approximately $0.188 As Dogecoin recovers from its support base, it should be your first stop. However, if Dogecoin completes the expected rebound from support, another higher price target is highlighted around $0.223.
Depending on how Dogecoin reacts here, a bullish move will target the order block around $0.25, after which further prices will target $0.284 and $0.306.
Featured image created by Dall.E, chart on Tradingview.com
