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A top market analyst has suggested that Dogecoin will rally to a four-year high when the current downside ends, highlighting a major support level to watch.
Master Ananda shared this view in a TradingView analysis today amid a broader market recession. Bitcoin dropped to an intraday low of $102,758, sparking a broader market downtrend that did not spare Dogecoin.
DOGE, the largest meme coin by market cap, joined the wave and is already down 4.8% today. Unless the current momentum reverses, the token is on the cusp of its third consecutive losing day, having retraced 13.6% during this period.
Analyst Identifies Crucial Support
For context, Master Ananda noted that he expected Dogecoin’s current price crash as its chart structure formed a lower high on June 5, a sign of a bearish reversal. While Dogecoin rebounded from the lows of the earlier-mentioned date, it has given back its gains, aligning with the bearish indicator.
Meanwhile, the analyst identified macro support levels at the 0.618 and 0.786 Fibonacci retracement levels, at $0.178 and $0.158, respectively, that could serve as a short-term hedge against escalating price weakness. However, he noted that they are weak supports and may not suffice for the bearish momentum.
Notably, DOGE has broken down from the 0.618 Fib. Support level at its current price but remains 8.6% away from the 0.786 Fibonacci level. Master Ananda noted that if the levels fail to hold, Dogecoin seems poised to retest the lows last seen in April.
Specifically, Dogecoin bounced from a major support level around $0.13 in April, a level that served as support in July 2024 and as resistance in September 2024. Notably, the meme coin retested the support in October and November of the same year but bounced extensively at each retest.
The analyst expects the $0.13 support to tame Dogecoin’s bearish momentum again if prices dump to the level. He noted that the RSI would have to go into extreme weakness for prices to fall below, which is very unlikely.
What’s Next After Support Retest?
Interestingly, Master Ananda advised going all in at the April 7 lows if prices ever retraced to that point, insisting it would be a great buy. As Dogecoin bounced from the support in October before rallying over 200%, he predicted a similar outcome.
Per the accompanying chart, the analyst expects Dogecoin to rebound from the lows and target a four-year price high. He predicted an over 250% upsurge in support to levels above December’s high of $0.484.
Dogecoin trades at $0.173 at the time of writing, 20% away from this support and 180% from the projected high. It bears mentioning that other analysts see DOGE surpassing the $0.484 mark this cycle, with targets like $1 and $2.9 in the books.