The Dogecoin price decline has already seen it lose the support at $0.2, suggesting that the decline is likely to deepen from here. This also aligns with the tight range that the meme coin has been trading in over the last few weeks, and could signal a restart of a consolidation trend. If the Dogecoin price is to see any meaningful recovery from here, then there is a major level that stands in the way. This raises the question: Will the last quarter of the year be bullish for Dogecoin?
The Level That The Dogecoin Price Must Break
A pseudonymous crypto analyst who goes by the name Catonese Cat on the X (formerly Twitter) platform has highlighted the level that has continued to hold the Dogecoin price down. This level lies at the 0.886 Fibonacci level, aligning with the price level just above $0.26, which has been a roadblock to its recovery.
Over the last few months, the Dogecoin price has failed to break above this level, and this suggests that this is where the bears are mounting their major defence. With the most recent recovery, the Dogecoin price had risen toward this level, but the weak momentum quickly faded, and the price crashed back down under pressure.
Highlighting this trend, the crypto analyst believes that this is the level holding the Dogecoin price back. The post explains that if the meme coin is able to break above the 0.886 level for good, then it would mean that the Dogecoin price is turning incredibly bullish.
However, with the price still trending well below this level, Catonese Cat explains that it means that Dogecoin is actually not ready to be incredibly bullish. With October almost gone, all eyes are now on November, which is historically a bullish month, to see what the crypto market holds.
Why November Could Be A Game-Changer
Looking at the past performance of the Dogecoin price in the month of November, it comes as no surprise that analysts are looking at this month favorably. Over the last two years, the price has risen drastically in November, leading to some of the highest gains for each respective year.
On average, the Dogecoin price has seen double-digit positive returns of 18.9% in the month of November, making it a highly profitable month, as data from CryptoRank shows. Additionally, the last quarter of the year often leans bullish and could support a price reversal, especially if Dogecoin is able to reclaim the 0.886 Fib level.
Featured image from Dall.E, chart from TradingView.com
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