Tracking the broader crypto market decline, Dogecoin (DOGE) has crashed to new lows, sending it back to a key demand zone. Market analyst Eric Crypto has shared a detailed analysis, highlighting the significance of this level and predicting that a hold above it could trigger a major rebound and subsequent price rallies for Dogecoin.
Dogecoin Price Plummets To Key Demand Zone
On January 31, Eric Crypto shared a technical price chart on X, showing that Dogecoin has dropped significantly from its late-year highs of around $0.26 and recently fell to about $0.11099. The move was accompanied by choppy price action and several volatility spikes before sellers finally pushed the price down into a clear support region.
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Following this drop, Eric Crypto noted that Dogecoin is now sitting right on a key demand zone near $0.11. He explained that the price briefly dipped below recent lows to grab liquidity before forming a visible base in this region. On the chart, this appears as a small consolidation box just above $0.11 following the sharp decline.
With price action now stabilizing at the base, Eric Crypto believes Dogecoin is positioned for a potential price bounce. He noted that if the meme coin can hold above the demand zone, it could stage a relief rally toward $0.14 could be its next move. Should bullish momentum continue, he added that higher targets around $0.18 and potentially $0.22 could come into play.
Considering Dogecoin’s price has declined to $0.103, a surge to $0.14 would represent a 36% gain. Additionally, a rally to $0.18 and $0.22 would reflect a potential increase of roughly 75% and 114%, respectively.
Eric Crypto concluded his analysis by characterizing Dogecoin’s current setup as one in which “risk is defined” and “upside is asymmetrical.” The analyst also urged investors to be patient as Dogecoin navigates a prolonged downtrend and aims for a recovery.
Analyst Says Dogecoin Looks Weak, But Can Still Recover
In an updated analysis, crypto expert Bitguru said that Dogecoin is currently trading within a long consolidation zone around $0.10 after suffering a sharp decline from $0.24 and a subsequent liquidity sweep. He acknowledged that Dogecoin’s price currently appears weak, indicating that selling pressure remains.
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Despite this downtrend, Bitguru noted that holding the current consolidation base could trigger a rebound for Dogecoin. According to the analyst, if the dog-themed meme coin can hold support, it could begin a recovery toward the $0.13-$0.15 range.
On the flip side, the analyst warned that a breakdown below this support level could invalidate Dogecoin’s potential rebound. If this occurs, he stated that DOGE’s downside risk would remain open, meaning the price could slide again toward lower levels.
Featured image from Pngtree, chart from Tradingview.com