Tracking the broader decline in the cryptocurrency market, Dogecoin (DOGE) has hit novel lowssending it back to the key demand zone. Market analyst Eric Crypto shared detailed analysis, highlighting the importance of this level and predicting that staying above it could cause a large bounce and subsequent increases in Dogecoin prices.
Dogecoin price falls to key demand zone
January 31 Eric Crypto common technical price chart on The move was accompanied uncertain price action and several spikes in volatility before sellers finally pushed the price down to a clear support area.
Following this decline, Eric Crypto noted that Dogecoin is currently in a good position key demand zone close to $0.11. He explained that the price briefly dropped below recent lows to provide liquidity before establishing a observable base in the region. On the chart, it looks like a petite consolidation box just above $0.11 after a keen decline.
Eric Crypto believes that the price action is currently stabilizing at the base Dogecoin is set for a potential price rebound. He noted that if the meme coin holds above the demand zone, the next move could be a rebound towards $0.14. If the uptrend continues, he added that higher targets around $0.18 and potentially $0.22 could come into play.
Considering that Dogecoin has fallen to $0.103, a rise to $0.14 would represent a 36% enhance. Additionally, an enhance to $0.18 and $0.22 would reflect a potential upside of approximately 75% and 114%, respectively.
Eric Crypto concluded his analysis by characterizing Dogecoin’s current setup as one where “risk is defined” and “positives are asymmetric.” The analyst also urged investors to remain patient with Dogecoin’s price fluctuations prolonged downward trend and strives to recover.
Analyst says Dogecoin looks delicate but can still recover
In an updated analysis by cryptocurrency expert Bitguru he said that Dogecoin is currently trading in a long consolidation zone around $0.10 after a keen drop from $0.24 and a subsequent surge in liquidity. He admitted that Dogecoin’s price seems delicate at the moment, which is an indication of this selling pressure remains.
Despite this downward trend, Bitguru noted that maintaining the current consolidation base could trigger a rebound in Dogecoin. According to the analyst, if a dog-themed meme coin can maintain support, then yes start your recovery towards the USD 0.13-0.15 range.
On the other hand, the analyst warned that a break below this support level could invalidate Dogecoin’s potential rebound. If that happens, he said Risk of loss to DOGE will remain open, which means the price may fall towards lower levels again.
Featured image from pngtree, chart from Tradingview.com
