Dogecoin Price Eyes $3 as Analyst Highlights Key Support Levels

Highlights:

• DOGE trades at $0.2453, down 30% in a month, with increased trading volume at $1.71 billion.
• Dogecoin price is consolidating around $0.22, with strong support at $0.19-$0.16, indicating potential accumulation.
• The memecoin eyes $0.2927 resistance; a breakout could push the price toward $0.40 amid rising buying pressure.
  

The crypto has seen a significant setback recently, with the global market cap declining to $3.2T from the highs of $3.07T in January. Despite slight recoveries, the broad market decline has seen most tokens lose their recent gains. 

Amidst the broad downturn, the memecoin sector has suffered the most, with prices correcting by almost half. In addition, the market cap and trading volume have dropped to $67.87B and $7.00B, respectively. 

Dogecoin Price Action

The largest memecoin, Dogecoin, has undergone a massive bearish trend recently, with the price forming higher highs and lows. The memecoin has dropped from the highs of $0.46 observed in late December when the broad market rallied. In January, DOGE consolidated around the $0.30 and $0.40 region at a time when the leading asset, Bitcoin, hit a new all-time high.

However, in early February, the broad market witnessed a pullback, which saw the memecoin correct below the $0.30 and further to the $0.22 region. Since then, the memecoin has been consolidating around this region.

At press time, DOGE is trading at $0.2453, down by 2.93% in the past 24 hours. Additionally, the memecoin is down by 11% and 30% on the weekly and monthly charts, respectively. Its market cap has declined to $36.17 billion while the trading volume has surged by 25% to $1.71 billion, indicating an increased market activity. 

Dogecoin Price Targets $3 as Analyst Points to Crucial Support Levels

Dogecoin price continues to be the center of attention and looks to a very crucial support area of $0.19- $0.16. As noted by Ali Martinez, this range has been a good location for accumulation in past cycles. Based on past trends, both bull and bear, Dogecoin has risen from these levels.

However, there are several levels of resistance for Dogecoin to conquer apart from the support zone. Thresholds of $0.35, $0.50, and $1 are important before any attempt can be made to reach $3. This upward movement might be boosted by sustained buying pressure and a broader market uplift by Bitcoin and Ethereum.

The most critical support zone for #Dogecoin $DOGE is between $0.19 and $0.16. If this level holds, the $3 target remains a strong possibility. pic.twitter.com/VZyqSM2p8U

— Ali (@ali_charts) February 22, 2025

For instance, Dogecoin has been moving within an ascending channel since 2014. The asset bounced at the lower edge, and the latest bounceback occurred at the beginning of February. Following this pattern, the price of DOGE might be targeting the upper trendline, which is approximately $4.

Technical Analysis – Will DOGE Price Break Out of the Consolidation Zone?

Looking at the technical indicators on the daily chart, DOGE has been consolidating around $0.2300 and $0.2800 since early February. During this period, the support level at $0.2034 has proved strong as the price rebounded strongly. 

Currently, DOGE has formed a green candlestick, which suggests a shift in market dynamics as the buying pressure increases. Should the current momentum hold, DOGE could rally to challenge the immediate resistance at the $0.2927 region. 

A break above this point could lead to a fresh rally toward the $0.3417 region, which has proved strong in recent sessions. Moreover, a successful breakout above this mark could pave the way for a retest at the key resistance at the $0.40 region.