Dogecoin (DOGE) is trading above a price level that could determine whether its turns into a base or extends into deeper weakness. A crypto analyst has identified a at $0.128, which could change Dogecoin’s bullish outlook if it continues to hold above it. According to the analysis, holding above this key level could create the ideal conditions for investors seeking long positions.   

Analyst Identifies $0.128 As Critical Support For Dogecoin

The Dogecoin price is above a that could define its next significant price move and signal how investors position themselves in the long term. Market expert Crypto Tony has an updated outlook on Dogecoin, focusing on the importance of reclaiming the key support zone around $0.128 before considering long positions. 

Notably, Crypto Tony has stated that a long setup could become more favorable and appealing if DOGE’s price can hold steadily above the $0.128 level. The support zone also emerges as Dogecoin’s price action shows early signs of stabilization after a . For the past few months, the meme coin has been in a decline, mirroring the and sustained risk-off sentiment. 

The analyst’s chart shows Dogecoin recently selling off sharply before finding temporary stability slightly above $0.128 a few days ago. The meme coin’s price is also trading below the highlighted horizontal line on the chart, which aligns closely with the support area. Visual projections on the chart further suggest a period of sideways movement between $0.128 and $0.130, followed by . Crypto Tony pinpoints a bullish target near $0.135, representing a more than 2.2% surge from Dogecoin’s price of $.0132, as of writing. 

Dogecoin Weekly Chart Signals Extended Correction Before Price Explosion

Pseudonymous crypto analyst Cantonese Cat has also a weekly analysis of Dogecoin, highlighting a . According to him, DOGE has already endured roughly 13 months of bearish price action, which aligns with a potential Wave 2 correction. The analyst stated that this downturn stage would precede an , which could see the meme coin’s price jump to new highs.

Cantonese Cat revealed in his analysis that his Dogecoin may feel unlikely to many traders at the moment. This is especially true given that Dogecoin has been trending downwards for most of the year, failing to break out of its bearish position. Despite this, the analyst notes that the skepticism is precisely why the scenario remains plausible. 

The analyst’s chart shows that Dogecoin’s first wave has already completed, followed by a declining Wave 2. Price action is also interacting with multiple Fibonacci retracement levels while respecting a long-term downward trendline.