The broad crypto market is witnessing massive sell-off pressures, causing Dogecoin to fall by over 5.6% to $0.26 in the last 24 hours.
As the asset’s price plunge continues to deepen, crypto analyst Ali Martinez has shared the key chance for DOGE’s possible price recovery.
While market participants have considered the massive slump in the price of the leading meme token an opportunity to buy the dip, charts shared by the analyst suggest that DOGE’s price might not recover from the downtrend anytime soon until the $0.29 barrier is broken.
Dogecoin rally still possible?
Following the sudden shift in investors’ sentiment witnessed across the broad crypto market today, Dogecoin has slumped massively in its daily price movement as it appears to be facing a critical test as it heads toward the $0.29 resistance level.
According to data provided by the analyst, $0.29 marks a crucial level for Dogecoin as it stands as the barrier that has consistently capped its rallies in several scenarios throughout the year.
Notably, the most recent price action showcased on the chart shows DOGE climbing to a high of around $0.28 before being rejected, positioning $0.29 as a strong barrier to the asset’s $0.50 target.
This price action has been mirrored by previous failed attempts witnessed in February, July, and August, as the token’s potential for major price breakouts was rejected during those periods. While several rejections have been observed at the $0.29 mark in previous months, the level is considered a key make-or-break zone by market watchers.
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As such, the analyst has expressed strong belief that a big upside trend is still possible for Dogecoin if, and only if, it is able to break the $0.29 level this time. More specifically, the leading memecoin needs a decisive daily close above $0.29 to confirm bullish momentum.
If this breakout becomes successful, Dogecoin has the potential to reclaim its previous highs ranging from $0.32–$0.35. Meanwhile, the asset could be poised for further upsurges, as the positive price action is expected to potentially fuel fresh retail interest and bullish sentiment across the broader crypto market.
Although it is not certain how soon Dogecoin will unlock a new level and break the $0.29 barrier, its trading price as of today was seen hovering around $0.26–$0.28. Hence, it appears that the asset might not be far from breaking this key level.
Furthermore, the growing hype surrounding the potential Dogecoin ETF launch has also raised hopes for renewed investor interest, which could see the asset breaking major resistance levels.