Dogecoin price is holding crucial support at the 23.60% Fibonacci retracement level of $0.1869, but can bulls trigger a bounce to $0.50 or will bears continue to push lower to $0.14? A trader is highlighting the potential for a 2x breakout rally.

What Is Next For Dogecoin Price After Crucial Support Holds?

As the crypto market continues to see top altcoins struggling, Dogecoin is trading at $0.19.

Last week, the largest meme coin fell by nearly 14%, extending its intraday decline to $0.1869.

Dogecoin is expected to sustain support at the crucial 23.60% Fibonacci retracement level of $0.1869.

On the daily chart, Dogecoin's price action shows a bullish failure to surpass a long-standing resistance trendline near the 50% Fibonacci level at the psychological mark of $0.25.

With a bearish reversal, Dogecoin has breached the 200-day, 100-day, and 50-day EMAs to test the 23.60% Fibonacci level at $0.1869.

However, with a couple of long-tailed Doge candles appearing over the weekend, the meme coin has managed to stay above the support level.

Yet, the MACD and signal lines have formed a bearish crossover and are approaching the center line, indicating growing bearish momentum.

As the MACD and signal lines continue to decline, the likelihood of a steeper correction in Dogecoin increases.

Furthermore, the downward movement in the 50- and 100-day EMAs has delayed the possibility of a bullish crossover that could signal a trend reversal.

A potential cup-and-handle pattern remains in play for Dogecoin if it rebounds from the 23.60% Fibonacci level.

To re-test the resistance near the $0.25 supply zone, the meme coin must break above the long-standing resistance trendline. Doing so would increase the probability of a breakout rally, potentially targeting the 78.60% Fibonacci level at $0.3618.

On the other hand, a daily close below $0.1869 would likely extend the decline toward the $0.14 support level.

Dogecoin Shows Neutral Vibes In Derivatives Market

Despite Dogecoin's short-term pullback, the derivatives market remains neutral on the meme coin.

DOGE open interest has remained relatively unchanged at $2.05 billion, while the long-to-short ratio at 0.9972 is nearly balanced.

However, liquidation data suggests a slight bearish tilt, with long liquidations rising to $2.44 million, compared to $1.77 million in short liquidations.

Although there has been a larger wipeout of bullish-aligned traders, the ongoing trading activity indicates a mildly bullish bias.

This is supported by the funding rate spiking to 0.0069%, reflecting optimism among Dogecoin traders. This increases the likelihood of a leverage-driven recovery that could complete a bullish pattern.

This is further supported by the fact that the variance indicator is at its lowest point since March 2023, indicating less noisiness in price action and potentially favouring a breakout scenario.

Analyst Predicts 2x Breakout Rally In DOGE

Adding to the bullish outlook, crypto analyst Tardigrade is highlighting the potential for a new bull run in Dogecoin.

The analyst is noting a breakout from a base-three pattern within a step-like parabolic curve formation. According to the analyst, at the end of the third base, Dogecoin could deliver a 2x return, potentially surpassing the $0.50 psychological level.