As Dogecoin (DOGE) retests key multi-year support, some analysts are predicting a bearish outlook for the largest memecoin by market capitalization, warning that its limit may not yet be reached.
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On Thursday, Dogecoin erased most of its first week jump and retested the $0,090 area again. Market watcher Rekt Capital highlighted DOGE’s recent performance, warning that its price correction may not be over yet.
As he explained, the leading memecoin lost its multi-year macro uptrend back in November, when it closed the month below its ascending support that had held it since the beginning of 2023.
Therefore, Dogecoin has officially confirmed its macro downtrend, which began to grow after the cyclical peak of $0.484 at the end of 2024. The analyst noted that historically, the cryptocurrency did not retest the macro downtrend line until the price was ready to break it and retest it after the breakout.
Based on this, he warned that memecoin is “unlikely to test this Macro Downtrend anytime soon.” Currently, DOGE is sitting in its lower range, which is also a key reaction zone that served as resistance before becoming support in 2024.
According to Rekt Capital, previous bear market performance suggests that Dogecoin is likely to lose its current position as support in the long term, but noted that the price may see a rebound as part of a range-bound cluster for now.
If history is an indication, then the price may drop into the Macro Downtrend and instead decline from the Range High resistance (red region). Perhaps even the upside is wicking across it, but it remains very short of the downtrend itself.
The analyst concluded that a short-term rally remains possible as long as the current level holds, but warned that it could be lost in the coming months before falling to much lower levels.
DOGE Price Case
Despite the bearish forecast, some market watchers shared an optimistic view of memecoin. Trader Tardigrade analyst recently signaled that Dogecoin may have already bottomed and may be preparing for its next run.
According to the chart, the cryptocurrency is retesting historical support for the third time. This route has been around for almost a decade, and its re-evaluation has preceded major price rallies.
The first touch in 2017 led to an explosive rally towards the 2018 $0.017 all-time high (ATH), and the second test in 2021 was followed by a major rally towards its current ATH of $0.731.
Now, Dogecoin is testing this area again and may start to recover in the short to medium term before a major price boost to new highs in the long term, if it follows its previous performance.
Similarly, the analyst also argued that the main structure of DOGE remains the same, regardless of the short-term price action. Last week, he confirmed that memecoin’s performance during each ATH meeting “tells the same story – because the Doge makes his own rules.”
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He emphasized that the cryptocurrency is currently similar to its previous ATH performance, nearing the end of the falling wedge pattern that has preceded significant price increases to new highs during previous rallies.
As a result, he considers Dogecoin a “prime fundraising window” before it goes to the moon.
Featured image from Unsplash.com, Chart from TradingView.com
