Amid the Dogecoin push to lower prices, an analyst has identified demand zones that could be possible rebound areas and a buying opportunity.
Notably, Bitcoin rebounded slightly after dipping to $80,000 last week, moving the broader crypto market with it. Today’s 2% surge has seen Dogecoin replicate a similar momentum, bouncing from $0.1656 yesterday.
Nonetheless, the leading meme coin has struggled recently. With its fourth consecutive negative candle yesterday, Dogecoin corrected 30% the previous week.
Meanwhile, a TradingView analysis has identified strong support for where Dogecoin could possibly rebound. The demand walls also serve as buying areas for enthusiasts looking to dollar-cost average (DCA) their DOGE positions or start accumulating the asset.
Analyst Highlights Buying Zones
With every dip comes a buying opportunity, especially for high-caliber assets tipped to see higher prices in the long term. Pseudonymous analyst “TheGift94” has highlighted demand zones where Dogecoin could find solace amid the intense downward pressure.
In a TradingView analysis, he identified three zones, which he tagged as “buying demand zones.” His outermost support stands at $0.20, an area that Dogecoin has already breached. The meme coin’s 13% correction yesterday to close at $0.1678 ensured it desecrated the zone.
Meanwhile, the analyst highlighted the second and final demand zones at $0.16 and $0.13, respectively. Notably, Dogecoin would have to correct 25% to reach the final support area, which served as a base for the asset’s northward trajectory in November.
Buying Zones per TheGift94
Lower Before the Next Bullish Round?
Moreover, MMBTtrader shares a slightly more bearish outlook. The analyst suggested in his TradingView analysis that Dogecoin could breach all three aforementioned supports to $0.08131, a price level last seen in August.
He noted that the over 53% dump could set in after Dogecoin lost major daily support at $0.185. However, he predicted that the prominent meme coin would pump from the global support at $0.08131 to reclaim $0.40.
Dogecoin Analysis per MMB Trader
Meanwhile, market watchers have maintained a bullish price outlook for Dogecoin despite the downsides. Analysis suggests that DOGE still has a window to surge to $6.24 and $8.5 before the end of this bull cycle.
In the meantime, Dogecoin trades at $0.1728 with a market cap of $25 billion.
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