An analyst has explained how Dogecoin falling to the lower level of a parallel channel could trigger a notable rise if the support floor holds.
Dogecoin may have recently moved along a parallel channel
In a new after on The pattern in question is a Technical Analysis (TA) ‘Parallel Channel’, which occurs when an asset observes consolidation between two parallel trendlines.
The upper level of the pattern is often a source of resistance, while the lower level is support. Together the lines trap the price in the area enclosed by them. In the event of a breakout, the asset may see continued movement towards the break. That is, a rise above the channel can be a bullish sign, while a fall below it can be a bearish sign.
Here is the chart shared by the analyst showing the parallel channel Dogecoin has potentially traded in over the past few years on the monthly time frame:
As shown in the chart above, the 1-month Dogecoin price retested the highest level of this parallel channel in late 2024, but the memecoin was ultimately rejected. Through most of 2025, the channel centerline remained tight for DOGE, preventing further bearish action. However, the level finally dropped in the last quarter of the year, and the currency has been on a longer decline since then.
Currently, the asset is still a significant distance from the lower level of the pattern, but if the trajectory of recent months continues in the near future, it is possible that it could close the gap. “I want to buy the dip at $0.0537,” the analyst noted. “If this bottom holds, we could see a 200% rally back to the mid-range at $0.16.”
It now remains to be seen whether Dogecoin will retest the support level of this parallel channel in the coming months, and if so, whether the cryptocurrency will find a bottom in it.
In the short term, a possible bullish signal has appeared on the asset’s weekly price chart, as Martinez noted in another X. after.
The chart shows that the Tom Demark (TD) Sequential indicator has given a reversal signal for Dogecoin after nine red candles, indicating that the bearish trend may be nearing its end. However, in the two days since the signal appeared, the value has only fallen further.
DOGE Award
Dogecoin has fallen to the $0.090 level after continuing its bearish momentum over the weekend.