Dogecoin (DOGE) has started 2024 on a rather bleak note, struggling to break out of a tight trading range despite showing some promise earlier in the year.

As the meme coin faces persistent selling pressure, some experts are now predicting that if a key support level fails to hold, we could see a swift drop toward $0.06. Here’s a closer look at the predictions and what they mean for Dogecoin.

The Upcoming Weeks Are Crucial For Dogecoin To Avoid Dropping To $0.06

According to cryptocurrency analyst @ali_charts, $0.17 is a critical support level for Dogecoin. The price of DOGE has been bouncing off this threshold recently, and if it fails to maintain this price point, it could set the stage for a much deeper decline — potentially dropping as low as $0.06. In essence, the $0.17 support level is seen as a make-or-break point for the cryptocurrency.

If Dogecoin breaks below $0.17 without reclaiming it as support, it would likely face more downward pressure, with analysts predicting a possible plunge toward the $0.06 mark. This prediction is grounded in technical analysis that highlights the potential for the price to fall through established support levels, especially when there’s no clear catalyst for upward movement.

Why $0.06 Is A Possible Target

The projected drop to $0.06 is based on technical indicators and historical price patterns. If Dogecoin loses its footing at $0.17, the next strong support level appears to be significantly lower — around $0.06. The reason this level is important is that it’s seen as a key point of previous price consolidations. A fall to this level would represent a severe loss for investors who have been holding the token, especially considering its highs in 2021.

However, it's worth noting that these are broad predictions based on technical analysis and prevailing market trends. The actual price movements of Dogecoin could be influenced by several other factors, including macroeconomic events, regulatory developments, and shifts in investor sentiment.

While the possibility of Dogecoin dropping to $0.06 exists, it's not a done deal. The cryptocurrency market is known for its volatility, and the direction of the price could change rapidly. For instance, if Dogecoin manages to break out of its trading range and rally above any round-trip Fib, it could set the stage for a move toward $0.25 or $0.3.