Dogecoin Faces Bearish Sentiments: Will It Bounce Back from $0.12?

Dogecoin (DOGE) is currently experiencing bearish sentiments, with some predicting a drop to zero as highlighted by Mags, a top analyst. Historically, Dogecoin has experienced significant fluctuations. From 2020 to 2021, it had support levels around $0.002 to $0.004 and resistance at approximately $0.01. 

This period saw Dogecoin break out from the $0.01 resistance level, leading to a parabolic uptrend. During the 2021 bull run, Dogecoin’s support levels shifted to around $0.05 to $0.10, with resistance around $0.35. This phase marked explosive growth, with Dogecoin reaching an all-time high close to $0.70.

Following this surge, Dogecoin underwent a correction and consolidation phase from 2021 to 2023. Support levels settled around $0.10 to $0.15, while resistance levels remained near $0.35. During this time, Dogecoin formed a base around the $0.10 to $0.15 range, indicating a period of stability. 

Recently, from 2023 to 2024, Dogecoin entered an accumulation and recovery phase. The support levels ranged from $0.05 to $0.10, with resistance near $0.15. Breaking out from this consolidation phase suggests the potential beginning of a new uptrend.

The future projections for Dogecoin are intriguing. If historical patterns and Elliott Wave Theory hold true, Dogecoin might experience a bullish breakout. The projected trend for 2024-2025 indicates support levels between $0.15 to $0.25 and resistance levels nearing $1.70. According to Elliott Wave Analysis, Dogecoin appears to be entering the third impulsive wave (2 to 3). This phase could lead to a substantial price increase if the trend continues.

As further noted by Crypto Daily, an analyst, recent price movements show Dogecoin’s price could hit $0.12 and bounce back. The resistance levels stand at $0.1393, $0.1501, $0.1700, and $0.2075. The chart highlights a symmetrical triangle pattern, typically indicating consolidation before a significant move. A recent break below the triangle’s lower boundary suggested a potential bearish move. 

However, Dogecoin bounced back from the $0.1205 support level, indicating a possible false breakout. Additionally, a double bottom pattern formed around the $0.1205 level, typically a bullish reversal signal. Volume spikes at support levels indicate strong buying interest, a positive sign for upward movement.

As of press time, Dogecoin trades at $0.1398, with a 24-hour trading volume of $1,107,177,682, showing a slight decline of 1.39% in the last 24 hours.