Dogecoin Is Retesting the Lower Bound of An Ascending Channel

An analyst has explained how Dogecoin could be at a make-or-break level right now based on a technical analysis (TA) chart pattern.

An analyst has explained how Dogecoin (CRYPTO: DOGE) could be at a make-or-break level right now based on a technical analysis (TA) chart pattern.

What Has Happened: In a new post on X, the analyst known as Ali Martinez has shared a TA pattern potentially forming in the meme coin's 1-week price chart.

The pattern in question is an Ascending Channel, which appears when an asset trades between two parallel trendlines sloped upwards.

As the price curve moves inside the channel, it observes consolidation toward the upside. The upper line of the pattern acts as a ceiling, providing resistance when the asset retests it. Similarly, the lower line acts as a point of support.

In the scenario that one of these levels breaks, the price can see a continuation of the trend in that direction. That is, a surge above the channel can be a bullish signal, while a drop under it is a bearish one.

Now, here is the chart posted by the analyst displaying the Ascending Channel that the weekly Dogecoin price has been traveling inside for the last few years:

The 1-week price of Dogecoin has recently witnessed a plunge to the support level of this multi-year Ascending Channel, situated around $0.16.

Last year, when the meme coin tested this line, it managed to find a bottom, which subsequently launched its price into a bull rally.

Given this trend, the latest retest of this line could also prove to be crucial for the cryptocurrency, with the analyst tagging the level as a "make-or-break" one.

If $0.16 holds, a rally to $0.57 could follow. If it fails, a drop to $0.06 becomes likely.

These targets are based on the Fibonacci Retracement levels, which are lines that correspond to important ratios from the popular Fibonacci series. Fibonacci Retracement levels are taken from a specific price top, with the point of the top corresponding to the 1 level.

From the chart, it's visible that DOGE is currently trading almost exactly at the 0.786 level, making the asset's current retest have another layer of significance. A breakdown could send the coin to the next retracement level, 0.618, which corresponds to the $0.06 target that the analyst has given.

Similarly, a surge upward could help Dogecoin touch the higher 1 level, situated around $0.57.

It now remains to be seen how the memecoin's retest would go.

Dogecoin is currently trading at $0.16, down 8.48% over the past 24 hours.

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