🔓Analysts found the bottom on Dogecoin
The grand collapse and liquidations of last week did not spare Dogecoin. But some analysts suggest that the asset has established the bottom of this cycle and will only rise further.
Key weekly support
To summarize Dogecoin's reaction to the cryptocurrency market crash last week, it fell by 40% and found support around $0.22. The last time the asset traded at this level was in early November.
Some analysts rely on the weekly Dogecoin chart and claim that $0.22 is part of a key trend line that played a decisive role throughout 2024. And now, as the price has bounced off this level, it represents significant support.
Weekly Dogecoin chart with a retest of the trend line
What on-chain data indicates
According to IntoTheBlock, the on-chain data indicates that buyers in the asset appeared exactly at the $0.22 level. The ability to hold above it in the coming weeks will confirm or refute the idea that the asset has reached the bottom in this cycle.
What historical data indicates
One of the traders identified a recurring pattern where the price of Dogecoin usually experiences significant pullbacks of more than 50% after a strong multi-month rally. However, these pullbacks have always been accompanied by another strong bounce, and ultimately Dogecoin reached a new peak.
Dogecoin: historical pullbacks and further growth
Historically, analysts highlight three major pullbacks after which strong growth occurred — the last time by 23,000%. No one expects such a movement now, but there is one recurring target that crypto analysts agree on. It is $2, and the first step towards this peak should be a breakthrough at the $0.3 level.
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