Is Dogecoin Reaching Its Bottom? Key Price Levels to Watch

Dogecoin is experiencing a noteworthy rebound from a significant technical level identified by analyst Kevin as a potential low for its current price correction. This development raises questions about whether Dogecoin has reached its bottom.

Key Takeaways

Analyst Kevin indicates that the $0.138 level is critical for Dogecoin's price stability.
A recent price movement showed Dogecoin dipping to $0.13443 before recovering to $0.152, marking over a 13% increase.
The performance of Bitcoin (BTC) and Tether (USDT) plays a crucial role in determining Dogecoin's future movements.
Current market trends suggest improvement for BTC, which may support Dogecoin's price as well.

Dogecoin news

Understanding Dogecoin’s Price Movements

On social media platform X, crypto analyst Kevin (@Kev_Capital_TA) pointed out the $0.138 level as a key indicator of Dogecoin's potential turning point. He shared a weekly DOGE chart stating: “$0.138 still holding strong on Dogecoin. If DOGE can maintain this level (Macro 0.382 + 200W SMA) and Bitcoin along with Tether hold their support and resistance, then $0.138 will mark the low of this corrective period. There is still work to do. The main focus should remain on Bitcoin and USDT dominance.”

Dogecoin price analysis | Source: X @Kev_Capital_TA

Kevin's chart indicates Dogecoin has recently dipped but rebounded sharply around the crucial $0.138 support zone. This area matches with the 0.382 Fibonacci retracement of the previous price rise, noted as “0.382 (0.13827),” and the upwardly rising 200-week simple moving average, which has also consolidated into this price range. Additionally, it aligns with a trendline that has guided DOGE’s price movements since mid-2023. A significant breach below this trendline could have serious technical implications for the currency.

In the last day, Dogecoin exhibited resilience, trading as low as $0.13443 before surging to $0.152, which represents more than a 13% increase at its peak. Kevin has emphasized the importance of the $0.138 support level in his analysis for several weeks. On November 22, he remarked: “$0.138 is massive support for Dogecoin, folks. Losing this level on 3D-1W closes could be detrimental. BTC's performance will heavily influence this outcome, so keep an eye there alongside USDT dominance.”

Kevin suggests that the market's overall health greatly influences Dogecoin. Notably, Bitcoin rebounded from $86,184 to $92,307 and later to $93,958, currently hovering around $92,816. He commented on Bitcoin's movement, stating: “A close above $91K on the 3D-1W candle supports the idea that a counter-trend rally is beginning within my Bitcoin corrective phase reversal area. However, one day does not define a trend. We must wait to see how it develops.”

This aligns with Kevin's earlier outlook from November 25, where he noted that the ongoing corrective phase indicated on BTC and the total altcoin index is nearing completion. He predicted a bottom would form soon, leading to a counter-trend rally in the following weeks for Bitcoin and altcoins. Although he believes the corrective phase is almost over, he acknowledges that a little more time is required for a proper bottom to emerge.

Kevin’s DOGE chart delineates the potential next steps. Significant resistance lies near the 0.5 Fibonacci retracement around $0.19, while lower support is identified at the 0.236 retracement near $0.093 alongside longer-term trendlines.

The determination of whether $0.138 will definitively establish the bottom of Dogecoin's correction hinges on two primary conditions that Kevin repeatedly emphasizes: DOGE must maintain its hold on the macro 0.382 level, the 200-week SMA, and the uptrend line during 3-day to weekly closes, and Bitcoin must substantiate its own counter-trend rally with consistent higher-timeframe strength.

Presently, the market's message is clear: the question of whether Dogecoin has reached its bottom starts and may end at $0.138. At the time of reporting, Dogecoin was trading at $0.14976.

Dogecoin price DOGE rebounds from key support | Source: DOGEUSDT on TradingView.com