Dogecoin price drops to $0.07: analyst points to crucial support

The Dogecoin price is currently at $0.07, a decline of 1.5% in the past 24 hours. While most investors have their attention elsewhere, analyst DaanCrypto is keeping a close eye on the coin. According to him, Dogecoin is approaching a key support level that has proven decisive multiple times in the past.

Dogecoin is available at OKX and Bybit.

Long-term support around $0.05 in sight

On the bi-weekly chart, it is clearly visible that Dogecoin is moving towards a zone that has been functioning as a strong bottom for years. DaanCrypto states that he is monitoring the situation closely when the price reaches the support zone around $0.05. That zone is also visible on the attached chart, where the green block marks the so-called “Major Long Term Support”.

The chart also shows that previous support levels around $0.08 have now been broken. The current price of $0.07 thus finds itself in no man’s land between the old bottom and the long-term support. How quickly Dogecoin reaches that zone depends on the broader market conditions.

Potential swing trade opportunity if market structure breaks

DaanCrypto indicates that he only becomes truly interested if, after a potential touch of the support zone, a period of sideways movement follows, followed by a breakout of the market structure to the upside. In that case, he considers opening a swing position on Dogecoin.

He acknowledges that there are likely altcoins with greater upside potential, but says that Dogecoin has historically responded reliably to such bottom zones. Once a bear market bottom is set, Dogecoin typically sees a strong recovery. The combination of a recognisable support level and the high liquidity of the coin makes it an interesting candidate for traders to watch.

Whether that happens remains uncertain. The broader crypto market is under pressure, as can also be seen with other major coins.