If Dogecoin drops below this level, there is a possibility that the price will drop to $0.06: Analyst

In a post on X on Tuesday, cryptocurrency analyst Ali Martinez (@ali_charts) shared a long-term Dogecoin (DOGE) price chart highlighting an important support level, the breach of which could open the door to a significant correction. Martinez identifies $0.19 as the threshold. He argues that if the token inspired by this meme falls below this level, “the likelihood of a deeper correction towards the $0.06 level will increase significantly”. Is Dogecoin about to drop to $0.06? The weekly chart—spanning from the beginning of 2014—describes Dogecoin transactions in a wide ascending channel. The continuous black trend lines encompass most of the price action from DOGE’s initial sub-cent pricing to its all-time high of around $0.73 in 2021. The dashed lines run parallel to these trend lines and seem to act as mid-channel guides, capturing smaller fluctuations within larger market cycles of Dogecoin.

It is noteworthy that DOGE has spent a lot of time moving sideways within the lower range of this channel, only to break out strongly when it tested the boundaries above. When Martinez posted the chart, Dogecoin was seen fluctuating around the $0.225 level, just above the important horizontal support area on the chart. On the channel are Fibonacci extensions originating from Dogecoin’s long-term price history. The Fib 0.786 retracement level—often seen as a decisive support level in deeper corrections—appears to be near $0.1978, very close to the $0.19 level highlighted by Martinez. Below $0.19, the chart shows little immediate technical cushion until about $0.13, fitting with the lower part of the multi-year uptrend channel. Below that, the $0.06 price level stands out as the most prominent downside target, likely fitting with a significant historical congestion area and fitting with the lower part of the multi-year uptrend channel. Among the other Fibonacci levels visible on the chart, Fib 0.618 is near $0.05, Fib 0.5 is near $0.03, Fib 0.382 is near $0.015, and Fib 0.236 is near $0.0059. Although these lower Fib levels may not all be effective, they help map out the historical support/resistance areas of DOGE in the case of prolonged selling pressure. The chart also shows higher Fib extension levels such as 1.272 (about $4.10, 1.414 )about $10.04, and 1.618 (about $36.32. Although these may seem far-fetched in the current market conditions, such extension levels on the long-term chart could serve as reference points if Dogecoin regains strong momentum and climbs to new highs in future market cycles. Currently, all eyes are focused on $0.19 as an important turning point for Dogecoin. If DOGE holds above this level, it could maintain its position in the ascending channel. However, as Ali Martinez warns, breaking $0.19 could increase selling pressure and potentially lead Dogecoin towards $0.06.