Dogecoin (DOGE) is currently in the spotlight after gaining over 34% in the past week. Crypto analyst Rekt Capital has pointed out that the meme coin could experience a rally to $0.27, but only if it maintains a critical support level at $0.22 on the weekly chart.
In a recent post on X, Rekt Capital emphasized that for DOGE to hit its target price of $0.27, it must hold above the $0.22 support level, which is critical for sustaining its bullish momentum. The analyst also highlighted that Dogecoin is currently retesting old resistance levels, now turning into new support. Notably, DOGE has recently closed a week above its pre-halving highs, signaling a potential shift in market sentiment.
However, the price action comes amid broader market volatility. Bitcoin (BTC) has seen a drop to around $100,800, which has affected many altcoins, including Dogecoin. The price of DOGE recently fell to $0.22, down from an intraday high of $0.25.
In addition to market fluctuations, the upcoming unlock of $100 million worth of Dogecoin tokens presents a potential risk. Token unlocks often create selling pressure, which could lead to a price decline in the short term.
Long-Term Outlook: $1 Target Remains in Sight
Despite the recent correction and the potential short-term pullback due to the token unlock, another prominent analyst, Crypto Kaleo, remains bullish on Dogecoin. Kaleo predicts that DOGE will eventually reach the psychological $1 mark. In fact, he suggests that Dogecoin may even surpass this level, with a possible rally up to $3, particularly in the second quarter of this year.
Short-Term Focus: $0.22 Key Support Level
For now, the $0.22 support level remains crucial for Dogecoin’s price action. A recent market analysis from Coingape noted that a bearish reversal pattern could cause a dip to this level before any sustained rally takes place.
Traders are closely watching the $0.22 mark, as maintaining support here could set the stage for a potential rally toward $0.27 and beyond.
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