Dogecoin (DOGE) is a leading meme coin in the cryptocurrency space that faced significant challenges this week, with a drop of 22%. According to CoinGecko, Dogecoin's price has fallen nearly 70% from its all-time high of $0.73. Despite these setbacks, analysts remain optimistic about Dogecoin's future price performance.
Dogecoin is expected to surge significantly.
The last quarter of this year is expected to usher in altcoin season, coupled with key support levels, sparking bullish sentiment among market observers.
Analysts from Bitcoinsensus boldly assert on social media platform X (formerly known as Twitter) that Dogecoin is on the verge of a significant surge, pointing out the visible upward trend line support on the cryptocurrency's weekly chart.
Their analysis suggests that Dogecoin is replicating the previous price surge patterns of 300% and 500% that occurred from September to November last year.
This suggests that even if the current pullback pushes the price down to below $0.20, Dogecoin remains in a favorable position to regain upward momentum at any time. The key support level identified is at $0.14, and if this level is maintained, it could trigger a rapid rebound.
Bitcoinsensus predicts a potential target price of $1.30 for Dogecoin, which means bullish investors could see an extraordinary increase of 800%. The broader economic environment, especially the recent jobless claims and GDP reports, also reinforces this prediction.
Road to recovery, key support levels, and resistance levels
Analysts at The Motley Fool noted that for the week ending September 20, weekly jobless claims fell to 218,000, below expectations, indicating resilience in the labor market.
Meanwhile, the U.S. Department of Commerce raised its second-quarter GDP growth forecast to 3.8%, reflecting strong consumer spending, the strongest quarterly growth in over two years.
These economic indicators may have a positive impact on cryptocurrency prices, as investors typically shift from traditional assets like the Nasdaq and S&P 500 to higher-risk assets that include Dogecoin. If there is sufficient liquidity in the market, this trend could trigger a new altcoin craze.
Looking ahead, Dogecoin faces key resistance levels that need to be broken in order to achieve sustained recovery. The price of Dogecoin has fallen below $0.24 three times and faces resistance at $0.27 and $0.28. A breakthrough of these resistance levels could lay the groundwork for a move towards $0.30.
Conversely, if DOGE pulls back, strong psychological support is at $0.14, with further support levels at $0.21, $0.19, and $0.16, which have historically been important rebound points for the token.