Reasons Why a Trader Believes DOGE Could Reach $6.50

Dogecoin finds itself on the brink of a critical support level following a significant market breakdown that has heightened bearish sentiment within the broader trend. Sellers have managed to tighten their grip on the meme coin, resulting in a decline towards levels that have not been witnessed in recent days. Traders are now closely monitoring whether DOGE will establish a base or continue on a downward trajectory into deeper corrective territories. As of the latest update, Dogecoin is trading at $0.1327, reflecting an 11.28% drop over the past 24 hours. Over a seven-day period, the asset has experienced a decline of 12.91%, with a 28.94% decrease in the last 30 days. These figures indicate a weakening bullish sentiment, signifying the acceleration of the pullback by sellers. DOGE has seen a dip below significant Fibonacci retracement levels on the weekly chart, failing to maintain positions above the 0.618 retracement at approximately $0.20 before breaching the 0.786 level around $0.17. The next liquidity zone to watch is the 1.0 Fibonacci region situated at $0.19 as the overall trend continues to shift downwards. In the event of a close below $0.13, the path towards the 1.618 extension at $0.02 might potentially unfold. However, there could be an early sign of stabilization if DOGE manages to reclaim the $0.16 to $0.19 bands. The Relative Strength Index (RSI) on the weekly timeframe stands at 37.72, with momentum remaining below the neutral 50 line and trending downwards. The RSI is also below its moving average and lacks any bullish divergences typically associated with prolonged corrective phases. Commenting on the market breakdown, Trader Tardigrade noted the closure of Dogecoin’s latest monthly candle below its long-term ascending support trendline. This was identified as a confirmed breakdown, which has historically signaled structural shifts in DOGE’s long-term trajectory before major uptrends. Tardigrade also raised the possibility of a potential “massive Doge season,” setting a long-term target exceeding $6.50. Achieving a surge to $6.50 from $0.1376 would necessitate a substantial 4,624% increase, underscoring the magnitude of the projected movement. These developments point towards the importance of closely monitoring Dogecoin’s price action in the coming days as it navigates through critical support levels and potential trend reversals. The market sentiment remains cautious yet optimistic about the potential for a significant turnaround in the near future.