Cover image via U.Today

Dogecoin (DOGE) is back in the spotlight, not due to Elon Musk, but because of a crucial price chart pattern. Currently trading just under $0.17, this level has historically acted as strong support. However, DOGE's recent performance suggests this may no longer be the case. The critical question is: can DOGE reclaim $0.17 as support before further price declines?

This isn't just a psychological barrier; the $0.17 zone aligns with the 78.6% Fibonacci retracement level from the 2021 rally, as highlighted by analyst Ali Martinez. Reclaiming this level could reignite short-term bullish sentiment, potentially paving the way for a price increase towards the $0.23-$0.30 range.

Dogecoin $DOGE needs to reclaim $0.17 as support! Failing to do so could open the door to a drop toward $0.06. pic.twitter.com/WUHX4tuSk4— Ali (@ali_charts) April 22, 2025

Instead, DOGE experienced rejection at $0.17, followed by a gradual decline. This is concerning, especially with the next significant support level at $0.06.

Such a drop wouldn't be entirely unexpected. DOGE has historically respected a long-term ascending channel; however, momentum is weakening despite the trendline remaining intact. The recent bounce from $0.06 resulted in a rally, but without reclaiming $0.17, this rally appears short-lived and lacks convincing volume.

Ultimately, the situation hinges on whether Dogecoin bulls can successfully push the price back above $0.17, establishing it as support. Failure to do so could trigger a deeper pullback, potentially wiping out much of this year's gains. The outcome will significantly influence the market's perception of DOGE's current cycle and whether it can maintain its position or enter a prolonged consolidation phase. Read the original article on U.Today