Dogecoin (DOGE) Price Needs To Hold Above Support At $0.17 To Avoid Breakdown

Dogecoin's price has struggled to reclaim the $0.20 level, with the meme coin slipping below this key threshold in recent trading sessions.

Crypto traders are currently keeping a close eye on Dogecoin’s price action as it attempts to stay afloat following a period of intense selling pressure.

This meme coin has struggled to reclaim the $0.20 level, having slipped below this key threshold in recent trading sessions. After a brief attempt to push higher, Dogecoin has found itself consolidating close to $0.17, which is an important support level.

According to crypto analyst Ali Martinez, holding this level could be the foundation for a major rebound. Martinez shared his analysis on social media platform X, predicting that if Dogecoin maintains support at $0.17, it could contribute to a strong rally toward $2.74.

Dogecoin Price Needs To Hold Above Support At $0.17

Dogecoin’s price action in the past two weeks has been highlighted by a steady decline alongside the rest of the crypto market. This steady Dogecoin price decline has seen it lose multiple support levels at $0.3, $0.25, $0.22, and most recently, $0.20.

With Dogecoin now trading below $0.2, the next notable support level to keep an eye on is $0.17, which could determine whether its long-standing multi-year uptrend remains intact or faces a breakdown.

This multi-year uptrend, which has been in place since 2017, was recently highlighted in a technical analysis on social media platform X by Martinez. As shown in the Dogecoin price chart below, the meme coin has been trading within an upper trendline of all-time highs and a lower trendline of bear market lows. The resulting uptrend range is divided into an upper and lower end by a middle trendline.

As it stands, recent market dynamics and decline has seen Dogecoin on the path to retesting the lower trendline of this multi-year uptrend. Current market conditions place this lower trendline around $0.17.

Image From X: ali_charts

Most Optimal Condition For Averages

The most optimal condition for a bullish trend would be for Dogecoin bulls to maintain trading above $0.17. As long as the meme coin holds above this threshold, the broader uptrend structure remains intact, and there’s enough possibility for a strong upward trend.

If anything, this would contribute to a major breakout, pushing Dogecoin to new all-time highs. After a multi-year rally, the meme coin seems due for a breakout of some sort.

To put this in perspective, this price point places Dogecoin at around 0.618 fib, which is the last major fib level before fib infinity at the upper trendline.

According to Martinez, if $0.17 breaks, then the next fib level to watch out for is at $0.14. A breakdown below this threshold could open the door for further downside with possible retracements to $0.10 or even lower.

However, if Dogecoin manages to stay above $0.17 and break out from the upper boundary of the multi-year uptrend formation, it could pave the way for a substantial rally toward $2.74, which is at the middle trendline dividing the uptrend range into equal halves.

The upper boundary of this multi-year formation suggests an even more optimistic scenario with a possible long-term target above $14.