The recent crypto market downturn triggered a sharp decline in the Dogecoin price that saw it erase its gains from prior days. However, this move has also exposed a critical level that the cryptocurrency must hold if there is to be any hope of a recovery. As with any critical support level, holding above it with momentum has its upsides, but also, breaking below it could have some dire consequences for Dogecoin holders, who are already seeing a lot of losses.
Why Dogecoin Price Must Hold $0.15
In a shared post on TradingView, crypto analyst The Alchemist Trader highlighted how the Dogecoin price is now facing critical support just above $0.15. This level has held through the last drawdown as buyers seem to have chosen this level to stage their defense. However, the meme coin is still not out of the woods, making the next moves all the more important.
The analyst explained that the last recovery attempt stopping so abruptly was a testament to the lack of bullish momentum. Given this, it is possible that bears might push the Dogecoin price back down enough to actually revisit the $0.15 level, and here, the strength of the support would be tested once again.
With the Dogeocin price still holding above $0.15, it points to some bullish sentiment that still remains. The Alchemist Trader also added that it is keeping the meme coin within a broader range, and this means that there is still the potential that the price will recover.
If the cryptocurrency is able to hold $0.15, bouncing off with momentum, then it could maintain its short-term bullish structure. A bounce could see it rise by more than 20%, with the next major resistance lying at the $0.2 level that has been a hurdle in the past.
What Happens If Support At $0.15 Fails?
The support at $0.15 is currently the level holding the Dogecoin price from crashing further. Therefore, if this level fails to hold, then it means that the digital asset risks a deeper decline from here. As the analyst’s post highlights, the Dogecoin price is already suffering from a weak rebound and declining volume.
These two factors suggest that Dogecoin is in a phase of consolidation, which is historically a very volatile phase for any cryptocurrency. So, a break below this level could see the price crash further to fill the wick from the October 10 crash. “If Dogecoin maintains its footing above $0.15, a gradual rotation toward $0.20 is likely, but a clean break below support could trigger a deeper correction in the short term,” the analyst explained.
Featured image created with Dall.E, chart from Tradingview.com
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