Dogecoin (DOGE) Shatters Key Support - Is a Rebound to $0.18 Next?

Dogecoin just sliced through critical price floors—and the charts hint this could be a classic 'shakeout' before a major move.

The Technical Breakdown

DOGE didn't just dip below support; it bypassed multiple levels traders were watching. That kind of action typically triggers stop-losses, flushing out weak hands and setting the stage for a potential reversal. The meme coin's volatility is behaving exactly as its chaotic pedigree suggests.

The $0.18 Target

All eyes are now on that $0.18 mark. It's not just a random number—it represents a key resistance zone that, if reclaimed, could signal a shift in momentum. Reaching it would require a significant surge, but in crypto, that's just another Tuesday. Remember when analysts said a dog-themed joke currency would never be serious? Now they're drawing Fibonacci retracements on its chart.

The market's punishing DOGE for its sins, but the setup for a sharp recovery is there. Whether it's savvy accumulation or just another speculative frenzy waiting to happen depends on your faith in canine-themed internet money. After all, in traditional finance, this would be a crisis. In crypto, it's an 'accumulation opportunity.'

Dogecoin Tests Critical Demand Zone

A well-known crypto analyst, BitGuru, pointed out that DOGE has undergone a major correction and is currently poised near a critical demand zone between $0.12 and $0.13, where the existing liquidity has been absorbed.

As explained by the analyst, crossing above $0.15-$0.16 could potentially open the way for recovery to $0.18 and above, giving hope to all who are closely following Dogecoin. On the other side, failure to do so may cause DOGE to be in a state of prolonged consolidation.

Dogecoin Recovery Depends On Key Signals

Commenting on the potential risks, More Crypto Online’s analysis warned of potential pressure on Dogecoin downwards. According to the analyst, until a conclusive sign emerges to suggest the correction has reached a bear-market low, the levels of $0.096 and $0.08 would need to be closely observed. Only when a micro 5-wave breakout is confirmed would a worthwhile recovery be anticipated.

Analysts have observed that the current trends affecting Dogecoin prices are influenced by overall market trends in the cryptocurrency market, including Bitcoin and ethereum value.

Although DOGE has managed to grab market attention because of its extreme volatility and social media-fueled hype, analysts have advised taking a close look at critical support-resistance levels to predict future rebounds or dips.

With trading of DOGE close to key supports, the next few days are set to be critical in deciding whether the asset will be able to continue its recovery or progress further through its corrective cycle. Investors and enthusiasts are urged to keep a close watch on the $0.12-$0.13 area.