- Dogecoin holds $0.16 support, aligning with Fibonacci and ascending trendline
- Breaking above $0.20 may confirm bullish trend with $0.24–$0.26 as next targets
- Supercycle theory suggests DOGE may target $2.02 if historical pattern repeats
Dogecoin ($DOGE) continues to capture investor attention as it holds firm above the critical $0.16 support level. This support level, according to market analysts, plays a significant role in Dogecoin’s future price direction.
Besides the short-term volatility, analysts highlight a much larger bullish structure unfolding. If this holds, Dogecoin could be on the brink of a multi-year rally.
The cryptocurrency, which has historically followed a repeating pattern of corrections and bull runs, may be entering another strong growth phase. While short-term market sentiment remains mixed, the larger trend suggests that Dogecoin could be preparing for its next major move upward.
Key Levels Signal a Bullish Continuation
Ali Martinez, a well-known market analyst, points to $0.16 as a key pivot level for Dogecoin. He notes that this price aligns closely with an ascending trendline dating back to late 2023. Furthermore, the $0.16 level also overlaps with the 0.382 Fibonacci retracement level, strengthening its importance as support.
Holding above this level could open the door for a rally toward the $0.24 resistance area. This resistance lies just below the 0.5 Fibonacci level near $0.26.
However, for this bullish scenario to play out, Dogecoin must first break above $0.20. A sustained move beyond that point could confirm bullish momentum and push prices toward $0.24.
On the flip side, if the price fails to hold above $0.16, it could trigger renewed selling pressure. This would potentially retest lower support levels.
Dogecoin $DOGE holding above $0.16 strengthens the case for a move toward $0.24! pic.twitter.com/zg9I9z1ZWT
— Ali (@ali_charts) July 4, 2025
Supercycle Theory Adds to Bullish Outlook
Meanwhile, another market analyst, Mags, offers a broader long-term perspective. He outlines Dogecoin’s historical cycle since 2014, marked by three recurring phases: correction, accumulation, and bull run. According to Mags, the correction and accumulation phases are already complete. Hence, Dogecoin may now be transitioning into its next bull run.
We are in a #Dogecoin Supercycle.
— Mags (@thescalpingpro) July 4, 2025
If you look closely, Dogecoin has been following a simple pattern since 2014:
i) Correction
ii) Accumulation
iii) Bull Run
According to this pattern, Dogecoin has already completed the correction and accumulation phase.
Bull run is next.👀 pic.twitter.com/pCG5Krwe4z
In previous cycles, Dogecoin saw explosive growth. For example, its 2017 rally surged by over 9,200%, and in 2021, it gained more than 29,000%. Based on this cycle, Mags projects a potential long-term target of $2.02 during the next bull run. Key resistance areas include $0.35, $0.70, and $2.00.
Liquidations and Market Sentiment
Despite this optimism, Dogecoin faced short-term selling pressure. Over the last 24 hours, it declined 3.80%, trading at $0.1668.
Liquidation data shows over $4.1 million in long and short positions were wiped out, mostly on Binance. Significantly, long liquidations dominated, reflecting traders’ overleveraged bullish bets in the short term.
