Dogecoin Price Registers Deviation From Macro Channel, Analyst Sets $6 Target

Dogecoin has faced continued selling pressure, losing the $0.17 support level in the past 24 hours. This price decline comes amid broader market decline, which has seen the meme coin also struggling to regain momentum. Despite this setback, a new technical analysis from Trader Tardigrade shows that DOGE remains within a historically significant macro channel. If the price holds within this range, it could indicate that the bottom has already formed, setting the stage for a significant breakout in the coming months.

Dogecoin’s Price Action And The Macro Channel

According to a detailed technical analysis of Dogecoin’s price action on the monthly candlestick timeframe, shared on social media platform X by crypto analyst Trader Tardigrade, Dogecoin has maintained a well-defined uptrend macro channel that has shaped its long-term price trajectory since its inception. However, the analyst pointed out that there have been instances where the meme coin briefly deviated above or below the upper and lower boundaries of this macro channel before reverting back inside.

The current price action of steady declines since January has seen DOGE now testing the lower trendline level within this macro structure. The question is now whether Dogecoin can rebound from the lower trendline without a deviation or whether it deviates again and trades below the trendline for a few months.

As highlighted by Trader Tardigrade, should DOGE remain within the macro channel without breaking below the lower trendline, it would indicate that the cryptocurrency has already reached its bottom. This scenario mirrors a similar pattern observed in 2017, when Dogecoin’s price respected the lower boundary without deviation. This, in turn, caused a strong rebound and sustained uptrend in the months that followed.

However, past price behavior from 2020 suggests that a deviation remains a possibility, meaning DOGE could temporarily fall below this trendline and spend the next few months trading beneath it. At the time of writing, this lower trendline is positioned around $0.15.

DOGE $6 Price Target And How To Get There

Despite the recent weakness in Dogecoin’s buying pressure, Trader Tardigrade is optimistic about Dogecoin’s long-term trajectory. Notably, the analyst projected a possible Dogecoin price surge toward $6. This ambitious price target hinges on the meme coin maintaining its macro structure without deviating and repeating the previous 2017 growth.

At the time of writing, Dogecoin is trading at $0.1687 after slipping below the crucial $0.17 support level in the past 24 hours. The loss of this support has intensified bearish sentiment, and there’s now a better likelihood of further downside movement in the short term. 

Technical indicators suggest that Dogecoin still has room to decline before finding solid footing, and $0.15 is now the next important level to watch. A confluence of factors, including technical indicators such as the Relative Strength Index (RSI), could be pivotal in determining when DOGE might reach oversold levels and bottom out at $0.15.

Featured image from Unsplash, chart from Tradingview.com

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