Dogecoin has entered a technically significant zone that could determine its near-term trajectory. At press time, the memecoin trades at around $0.13, hovering near a crucial support level that analysts are watching closely.
DOGE price chart, Source: CoinMarketCap
Technical analyst Kevin has identified $0.138 as the pivotal price point Dogecoin must reclaim to restore its bullish structure. The level represents the confluence of two major technical indicators: the macro 0.382 Fibonacci retracement and the 200-week simple moving average.
Kevin emphasized that reclaiming this level requires confirmation through three-day and weekly closes rather than brief intraday movements. He described the current price zone as a “DCA zone” where Dogecoin is consolidating around critical support. A sustained break above $0.138 on higher timeframes would mark a significant positive shift in the asset’s technical outlook.
Historical Context Shows Pattern of Support
The analyst previously flagged $0.138 as “massive support” in November when Dogecoin traded above this threshold. His warning proved prescient as the memecoin subsequently lost this level and declined to its current prices.
Kevin referenced a longer-term pattern dating back to 2022. Dogecoin has bounced five times after the weekly RSI dropped below 40 following a breakout that year. He outlined the $0.143 to $0.127 range as the broader decision zone for long-term price direction.
A failure to hold this range alongside a weekly RSI breakdown would signal a shift toward bearish price action. Conversely, maintaining support within this zone has historically preceded bullish continuations for the cryptocurrency.
Bitcoin Performance Remains Key Driver
Kevin stressed that Bitcoin’s price action will ultimately determine whether Dogecoin can reclaim its critical level. He noted that a DOGE recovery above $0.138 would likely coincide with Bitcoin reclaiming the $88,000 to $91,000 range.
The analyst expressed caution about Bitcoin’s current technical setup. BTC has faced rejection from key four-hour moving averages nine times since October 12. The cryptocurrency has not closed a day above these averages since mid-September.
At the time of writing, Bitcoin trades at around $87,696, indicating a 2.38% decline over the last 24 hours.
BTC price chart, Source: CoinMarketCap
Source: https://coinpaper.com/13366/analyst-issues-urgent-warning-dogecoin-must-reclaim-this-level-now
