Dogecoin price has recently experienced a notable decline after failing to clear key resistance levels. Despite this, several analysts are forecasting a potential rally, with some projections suggesting that Dogecoin’s price could reach $2 soon.
Dogecoin Price Key Support Levels
Dogecoin price has shown significant price fluctuations over the years. After failing to break past the $0.180 mark, the cryptocurrency dipped below several support levels, including $0.1750, $0.1720, and $0.1620. At one point, the DOGE price traded close to $0.1550, demonstrating the current bearish sentiment in the market.
However, analysts are closely watching Dogecoin’s behavior around the critical Fibonacci retracement levels. According to crypto analyst Tarder Tardigrade, the 0.5 and 0.618 levels are significant because it is usually on these levels that bulls and bears create their turning points. In the past, the Dogecoin price has always regained these levels, marking them as support levels. At the moment, Dogecoin is trading higher than these levels, which may signal a reversal.
Technical analysts believe that if the price of Dogecoin stays above these levels, it is capable of moving higher in months to come. This would be similar to past trends where at some levels, Dogecoin rises sharply after consolidating at those levels.
Analysts Project $2 Target for Dogecoin Price
Currently several analysts believe that the Dogecoin price will soon go to $2. Tarder Tardigrade, an analyst, has pointed out that the cryptocurrency is on the verge of a breakout. Based on his technical analysis, the current DOGE price formation has characteristics similar to the previous descending channel followed by a parabolic rise.
Tardigrade pointed out that the DOGE price could form an ascending triangle in the range of $0.1732 to $0.1740 where an upthrust could occur to set the bulls on the charge. If this occurs the next levels of resistance exist in the region of $0.1800 to $0.1850 and if the price is to breach this region then a bigger rally can follow. According to his observation, if it follows the same trend like past bull cycles, Dogecoin price could rise to $2.
In addition, another analyst, Dynamite Trade, opined that Dogecoin has maintained a bullish outlook in the long run. By his estimation, the cryptocurrency is in a cycle and could possibly go up to $5.00 in the next phase of the market. This forecast is based on the established rising support trend observed during previous cycles, which continues to indicate a positive long-term outlook for Dogecoin.
Potential Catalyst: Dogecoin ETF Approval
A significant potential catalyst for Dogecoin’s price could come from developments in the broader cryptocurrency market. Speculation is growing around the possibility of a Dogecoin exchange-traded fund (ETF) being approved by the end of 2025. Current projections, according to Polymarket, suggest a 69% chance that the Dogecoin ETF could be approved by December 31, 2025.
Source; Polymarket
If the Dogecoin ETF is approved, it would allow institutional investors to gain exposure to the cryptocurrency in a regulated manner. This could lead to a surge in demand for Dogecoin, further driving up the DOGE price. The approval of such a product would also bring additional legitimacy to Dogecoin as an asset, potentially attracting more retail and institutional investors.
While the Dogecoin ETF remains speculative at this stage, analysts believe that its approval could act as a significant catalyst for price growth, with some projecting that Dogecoin could reach new all-time highs. Should the ETF come to fruition, it could provide the momentum needed for Dogecoin to break past previous resistance levels and continue its upward trajectory.
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