As Dogecoin (DOGE) finds itself testing a crucial multi-year support level, analysts are divided on the memecoin’s future trajectory. Despite a brief bounce earlier this week, DOGE has once again dipped to the $0.090 mark, raising concerns about the sustainability of its price recovery. Prominent market analyst Rekt Capital has issued a cautionary note, suggesting that the recent price correction may not have reached its conclusion. The downturn began last November when DOGE slipped below its long-standing ascending support, officially marking the start of a macro downtrend that follows a peak of $0.484 during the late 2024 bull run.
According to Rekt Capital, historical patterns indicate that Dogecoin typically does not retest its macro downtrend line until it is poised for a breakout. This suggests that the memecoin may not revisit this critical resistance point in the near future. Currently, DOGE is positioned at the lower end of its trading range, a zone that previously served as both resistance and support in 2024. However, based on past bear market behavior, Rekt Capital warns that this support level could eventually give way, although a temporary rebound is possible as the market stabilizes within its current range.
Contrasting this bearish outlook, some analysts maintain a more optimistic perspective. Trader Tardigrade points to a historical support line that Dogecoin is testing for the third time, a trendline that has held for nearly a decade. Previous retests have often preceded substantial price rallies, including the surges witnessed after the 2017 and 2021 retests. Tardigrade believes that if past performance is any indicator, Dogecoin may be on the cusp of a recovery that could lead to significant price gains in the mid to long term.
Furthermore, Tardigrade argues that the foundational macro structure of Dogecoin remains intact, irrespective of short-term fluctuations. He highlights the resemblance of the current price action to previous all-time high rallies, suggesting that Dogecoin is nearing the end of a falling wedge pattern that has historically signaled major price expansions. This analysis leads him to conclude that Dogecoin could be in a “prime accumulation window,” positioning itself for potential growth as market conditions evolve.