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Dogecoin (DOGE) Price: Key Technical Levels Could Signal Major Trend Reversal Soon
Dogecoin’s recent price action has sparked significant interest among analysts and investors alike. The cryptocurrency, which has been trending lower in recent months, appears to be forming a low, followed by a lower low while the RSI remains oversold. This phenomenon is often seen as a sign that the market is preparing for a trend reversal.
Furthermore, CryptoElites has identified a symmetrical triangle breakout pattern developing in DOGE’s price chart. This formation could potentially propel the token towards $5, if it continues to hold support at critical levels. Moreover, on-chain metrics indicate strength despite the current weakness, as new wallet addresses have more than doubled from 16,400 to 34,600 over a single month.
Glassnode data reveals that this rapid growth in network adoption often precedes positive price action in the cryptocurrency market. Meanwhile, analyst CryptoElites suggests Dogecoin could surge by an incredible 11,811% to reach $20 if it maintains support at the crucial $0.16 level.
In addition, respected market analyst Ali Martinez has put forward a more optimistic scenario, suggesting that DOGE could potentially bounce towards the mid or upper boundaries of its ascending channel. These targets align with the 1.272 and 1.618 Fibonacci extension levels at $2.77 and $20, respectively. While this forecast is ambitious, it is not unprecedented; previous predictions have shown a similar trajectory.
Currently trading at approximately $0.17, DOGE has managed to maintain its position above the critical $0.16 support level that many analysts are closely monitoring. A potential drop below this threshold could invalidate the bullish outlook and signal further weakness in the market.
On a more positive note, the increase in new wallet addresses underscores growing interest in the Dogecoin ecosystem. This metric has doubled from 16,400 to 34,600 in just one month, highlighting the cryptocurrency’s resilience amidst the current market conditions.
The combination of technical indicators and robust network growth suggests that DOGE may be gearing up for a potential trend reversal. However, it is essential for the cryptocurrency to clear immediate resistance levels before this bullish scenario can be confirmed.
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