Dogecoin Tests Key Support as Analyst Eyes Rally to $0.50

• Dogecoin holds critical 23.60% Fibonacci support at $0.1869 after 14% weekly decline.
• MACD bearish crossover indicates growing downward pressure toward $0.14.
• Analyst Tardigrade predicts 2x rally potential from base-three pattern breakout.

Dogecoin is testing crucial support near $0.1869 as the largest meme coin by market cap struggles with broader altcoin weakness. Trading around $0.19, DOGE has declined nearly 14% over the past week, with traders watching whether the 23.60% Fibonacci retracement level will hold or break.

The current support level aligns with a psychological area that has provided buying interest in previous corrections. Weekend price action showed long-tailed candles suggesting buyers stepped in near these levels, though follow-through remains uncertain given deteriorating technical indicators.

Dogecoin’s recent price action reveals a failed attempt to break above long-standing resistance near the 50% Fibonacci level at the psychological $0.25 mark. A downward chain reaction of technical breaks has been created as a result of the bearish reversal pushing DOGE below the 200-day, 100-day, and 50-day EMAs.

Dogecoin MACD signals growing bearish momentum

Technical indicators point to increasing downward pressure. Indicating growing bearish momentum, the MACD and signal lines have created a bearish crossover and are getting closer to the center line. The likelihood of a steeper correction rises as these indicators keep falling.

The decline in the 50-day and 100-day EMAs has postponed any possible bullish crossover that may indicate a turnaround in the trend. Usually, this EMA setup produces resistance overhead, which makes any attempts at recovery more difficult.

If Dogecoin succeeds in recovering from the present 23.60% Fibonacci support, a possible cup-and-handle pattern is still possible. For this scenario to play out, DOGE would need to break above the long-standing resistance trendline and retest the $0.25 supply zone.

If resistance is overcome, a breakout rally may be initiated, with the 78.60% Fibonacci level at $0.3618 as the target. The slide would probably continue until the next significant support at $0.14, though, if the daily close fell below $0.1869.

A breakout from a base-three pattern within a step-like parabolic curve form has been noticed by cryptocurrency analyst Tardigrade, indicating that Dogecoin might be ready for a new bull run. According to the expert, DOGE might produce a two-fold return at the end of third base.

This projection would push Dogecoin above the $0.50 psychological level, marking a significant rally from current prices near $0.19. The base-three pattern suggests accumulation phases followed by explosive upward movements, though execution depends on holding current support levels.