Dogecoin (DOGE) tested the support level of $0.090 again on Thursday, and analysts' opinions are still divided on whether this meme coin has bottomed out or is heading for much lower prices.
DOGE macro downtrend
Notable market analyst Rekt Capital recently pointed out in a post that the price correction of Dogecoin is far from over. He stated that DOGE fell below the upward support line that had been maintained since early 2023 at the closing of November's monthly candle, losing the macro uptrend that had persisted for years.
This breakout was a signal confirming the macro downtrend that began after Dogecoin soared to $0.484 in the late 2024 bull market.
Rekt Capital stated that the coin is currently positioned at the bottom of a key zone, which has historically acted as resistance and is expected to turn into support in 2024.
He warned that this support zone is likely to 'lose its value over time' based on past bear market behavior. While a technical rebound may occur as long as this level is maintained in the short term, he added that a sustained rebound rally does not seem close.
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Trader Tardigrade's DOGE bullish scenario
Not everyone shares this perspective.
Analyst Trader Tardigrade claimed that Dogecoin may have already hit the bottom and could be laying the groundwork for the next major bull market. He pointed out a long-term trend line that has been maintained for about a decade, explaining that DOGE is currently retesting that line for the third time.
The first touch was in 2017, when DOGE was on the verge of a rally that would lead to an all-time high (ATH) of $0.017.
The second retest occurred in 2021, after which it skyrocketed to the current all-time high of $0.731.
Trader Tardigrade also noted that the current price structure of Dogecoin is similar to just before the formation of past ATHs, which includes a descending wedge pattern that has historically appeared before large rallies. He described the current zone as the 'optimal accumulation zone.'
Whether this optimism can be maintained depends on how much additional selling pressure can be absorbed around $0.090 in the coming weeks.
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