Key Insights:
- $0.17 support is critical and could trigger a bullish reversal
- Historical Doji pattern signals potential price surges like 2017 and 2020
- MVRV Z-Score remains low indicating Dogecoin has more upside potential
Dogecoin price stands at an important juncture where its support level faces a critical test to determine its upcoming price shifts. The token maintains its position at $0.19384 but shows support around $0.17, which matches the lower boundary of its ascending price channel. This strong support level maintained its position in prior price corrections to produce rebounds, which pushed prices higher.
A bullish price reversal for Dogecoin could occur if it stays above its current support zone, which might push its price targets to reach $2.74 according to Fibonacci levels. However, DOGE may fall to lower price zones before attempting another upward movement when support fails to maintain its current position.
Dogecoin at a Critical Support—Will It Rebound to $2.74?
The Dogecoin price remains centered on $0.17 because this level represents its essential support area, which aligns with its long-term ascending channel. Historically, the price trends of Dogecoin have been shaped by this channel, which provides support during market pullbacks and resistance during price increases.
A sustained price position above this support level would create favorable conditions for an extended upward price movement toward higher targets.
Meanwhile, the Fibonacci retracement tool reveals significant price areas which have affected Dogecoin’s past price cycles. The 0.618 Fibonacci retracement level at $0.06 has historically served as a robust support point, which triggered price rebounds, but the present-day critical role belongs to the 0.786 level at $0.16.
A successful recovery from the present support zone could propel DOGE to $0.57 (Fib 1.0), $2.74 (Fib 1.272) and potentially reach $2.74 (Fib 20.32) under strong market momentum.
The price will likely fall to $0.12 or possibly reach $0.06 if Dogecoin cannot sustain $0.17 support levels. The continued support within this channel demonstrates an intact bullish trend, which increases the probability of a price breakout.
Dogecoin price Monthly Doji Repeats 2017 Pattern—A Bull Run Ahead?
On the monthly time frame, Dogecoin has formed a Doji candle, which indicates market indecision or potential price reversal. A Doji pattern emerges when an asset records matching opening and closing prices, thus revealing neutral market conditions between buyers and sellers.
Based on historical market behavior, Dogecoin typically experiences significant price fluctuations after forming Doji patterns at essential support and resistance levels.
The current market pattern shows a Doji formation that has previously indicated major price rallies in Dogecoin history. During 2015-2016, the price rose from under $0.000014 to over $0.014 through this identical pattern, which generated a 99,900% profit.
A similar pattern materialized in 2020 before DOGE launched an all-time high price of $0.73 from its initial value of $0.002, which resulted in a 36,000% increase. The token shows another Doji pattern within the $0.14-$0.25 price range, which indicates a potential powerful price increase.
The MVRV Z-Score Suggests More Upside—Nowhere Near Cycle Top
The Market Value to Realized Value (MVRV) Z-Score examines Dogecoin’s market value against its average on-chain acquisition price to determine if the digital currency is overvalued or undervalued. The MVRV Z-Score indicator has shown that the token experiences extreme overvaluation when its score reaches above 10, which typically indicates the peak of previous market cycles.
The Dogecoin price reached its peaks at $0.004 in May 2017, $0.02 in January 2018 and $0.73 in May 2021, which corresponded with MVRV Z-Score peaks.
The current MVRV Z-Score for Dogecoin stands at below 2, which indicates the cryptocurrency is not in the same overvalued position that triggered previous market cycle peaks. The current MVRV Z-Score value indicates the token exists in an early-to-mid stage of its ongoing market cycle, which implies additional price appreciation potential.
The MVRV Z-Score has shown historical patterns that could result in DOGE price increases to $1.00, $2.50 or potentially $5.00 during the upcoming bull market.
However, Dogecoin will likely experience market consolidation until it breaks out of its current position when the MVRV Z-Score stays below 2. The observed data shows Dogecoin has not achieved the valuation peaks observed during previous market cycle peaks, thus supporting continued upward price movement.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
