Has Dogecoin Hit Bottom? This Price Could Indicate The Answer

Dogecoin has experienced a significant rebound from a critical technical level that one expert believes could mark the bottom of its current correction.

Crypto analyst Kevin recently pointed out the $0.138 area as a crucial line to watch. By analyzing a weekly DOGE chart, he stated, “$0.138 still holding strong on Dogecoin. If DOGE can maintain this level (Macro .382 + 200W SMA) and BTC + USDT maintain their respective support and resistance levels, then $0.138 could be the bottom for this correction. However, there is still more work to be done, with the main focus remaining on BTC and USDT D.”

Looking at the 1-week timeframe, Dogecoin’s price dipped down to a dense support cluster around $0.138 before bouncing back. This region aligns with the 0.382 Fibonacci retracement of the previous advance, denoted as “0.382 (0.13827),” and the rising 200-week simple moving average now situated in the same zone. Additionally, the area coincides with an upward trendline that has been guiding DOGE’s price movement since mid-2023; a significant breach below this trendline could be detrimental from a technical standpoint.

The bounce has also been evident on shorter timeframes. DOGE dropped as low as $0.13443 before rising to $0.152, representing a more than 13% gain at its peak.

Kevin has continuously emphasized the importance of this level in recent weeks. On November 22, he stated, “$0.138 is massive support on Dogecoin folks. You really do not want to see that lost on 3D-1W closes. Obviously BTC’s performance will be crucial in determining this outcome, so attention should be on BTC and USDT D.” According to his analysis, the integrity of the DOGE support cluster is closely tied to Bitcoin’s higher timeframe structure and stablecoin flows.

The overall market conditions are beginning to align in Kevin’s favor. Bitcoin recently rebounded from $86,184 to $92,307, extending to $93,958 before settling around $92,816. Kevin mentioned, “A close above $91K on the 3D-1W candle would support the idea that the counter-trend rally in my BTC corrective phase reversal zone is beginning. However, one day’s movement is not definitive, so further observation is needed.”

Building on his previous assessment from November 25, Kevin believes that the corrective phase on BTC and the “Total 2” altcoin index is nearing its end. He expects a formation of a bottom and a subsequent counter-trend rally in the coming weeks but notes that additional time is required to establish a proper base.

Within Kevin’s DOGE chart, distinct alternatives are illustrated. The resistance around the 0.5 Fibonacci retracement sits at approximately $0.19, while lower support is identified at the 0.236 retracement near $0.093, along with longer-term trendlines.

The confirmation of whether $0.138 signifies the definitive low of Dogecoin’s correction hinges on two critical factors reiterated by Kevin: DOGE must uphold the macro 0.382 plus 200-week SMA and the uptrend line on 3-day to weekly closes, alongside Bitcoin confirming its counter-trend rally with sustained higher-timeframe strength.

At current market conditions, it appears that the price level of $0.138 will play a pivotal role in determining whether the Dogecoin correction has reached its bottom.