Dogecoin Must Hold This Support Or Risk Crashing To $0.015, Analyst Warns

According to prominent crypto analyst Ali Martinez, Dogecoin (DOGE) is currently at a crucial point on its long-term price chart. The coin is trading within an ascending parallel channel that has influenced its price movements since 2014. At present, DOGE sits just above a critical support level, which if breached, could trigger a severe price drop to $0.015.

Potential Crash Alert

Martinez’s observations highlight that each time DOGE has rebounded from the lower boundary of this channel, it has surged towards the upper resistance level. Conversely, if it fails to breach the upper limit, it typically returns to the lower boundary. This pattern has been consistent across major price swings in the years 2017-2018 and 2021. The analyst emphasizes the importance of the channel’s lower trendline in maintaining DOGE’s upward trajectory.

Martinez’s chart includes various Fibonacci retracement and extension levels, which offer insight into significant historical price levels. The important thresholds are identified as follows: $0.0068 (0.236 Fib), $0.0159 (0.382 Fib), $0.0316 (0.5 Fib), $0.0625 (0.618 Fib), $0.1652 (0.786 Fib), $2.74 (1.272 Fib), and $6.24 (1.414 Fib). Notably, the $0.16-$0.19 area coincides with the lower boundary of the channel and the Fibonacci level around $0.1650.

Martinez warns that a decisive break below the $0.19 support level could result in a sharp downturn to $0.015, a significant drop that would erase gains made over recent price cycles. As he notes, “DOGE remains within an ascending parallel channel. As long as the lower boundary at $0.16 holds, a rebound toward the mid-channel or even the upper resistance at $6.24 is possible.”

At the time of writing, DOGE is trading at approximately $0.20, and traders are advised to keep a close watch on the critical support levels to prevent significant losses.

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