Dogecoin Price Prediction: $0.18 support level stabilizes, next target $0.26 resistance zone

After experiencing a previous deep pullback, the price of Dogecoin (DOGE) has successfully stabilized above the key high time frame support level of 0.18 USD, indicating that an accumulation phase may be forming. With the support level firmly held and Musk's latest posts on the X platform adding strength, the market is facing a narrow range consolidation between key structural levels. Technical analysis indicates that once Dogecoin successfully recovers the Point of Control and is accompanied by strong bullish volume, the price is very likely to break out of the consolidation and target the next important resistance level at 0.26 USD.

Key support stabilizes: Dogecoin enters accumulation phase

After experiencing a severe surrender-style sell-off in early October, the price of Dogecoin (DOGE) successfully stabilized around the 0.18 USD area, which is a structural bottom of its high time frame, with strong support.

1. Strong Bottom Defense: $0.18 serves as a key support level, demonstrating strong resilience over the past week, with prices consistently staying above it.
2. Signals of Demand Recovery: The price has successfully reclaimed the Value Area Low slightly below $0.18, indicating that buyers have entered the market, actively defending this area and laying a solid foundation for the subsequent consolidation phase.
3. Formation of Accumulation Pattern: The consolidation pattern forming between the Point of Control (POC) and the 0.18 USD support level indicates that an accumulation area is developing. Historically, this structure, when supported by volume and momentum, often precedes a price expansion phase.

Confirmation of Technical Key Points and Rise Path

The next movement of Dogecoin will depend on whether it can effectively break through the current consolidation range, with particular attention to the key resistance at control point.

Next major target: $0.26 is the next high time frame resistance level and potential upside target. This area is the next major liquidity accumulation zone, which will attract significant attention once market momentum strengthens.

Key Conditions for Breakthrough: Volume and Bullish Inflow

Although the accumulation phase is a bullish sign, Dogecoin must meet some key conditions to achieve a sustainable breakout and surge towards 0.26 USD.

1. Recovering the Point of Control (POC):Dogecoin's bullish outlook's next step is to successfully reclaim the POC which serves as the key resistance area of the current range.
2. Strong trading volume support: A breakthrough of POC must be accompanied by an increase in bullish volume. A breakthrough with low volume is likely to struggle to maintain momentum, with a risk of pullback to the consolidation range.
3. Long Inflows in Spot and Futures: To achieve a sustainable rise, the bullish inflow of funds in the spot market and futures market must increase. If there is strong volume and a bullish engulfing candlestick on the daily time frame, it will confirm that demand is driving the next round of rise.

Expected Price Trends and Trading Recommendations

If Dogecoin can continue to hold the 0.18 USD area, the accumulation phase may last for a while, preparing for the subsequent expansion.

1. Continuous Accumulation: With confirmation of defense at 0.18 USD, the price will continue to consolidate within the current range, waiting for momentum.
2. Decisive Breakthrough: Once the price decisively breaks through the POC with increasing bullish trading volume, the price trend is highly likely to be pushed towards $0.26, which is the next major resistance area. Investors should closely monitor the volume changes near the POC.

Conclusion

The stabilization of Dogecoin at the key support level of 0.18 USD is a positive signal for the market's shift from selling sentiment to a strategic accumulation phase. Although Musk's social media endorsement has brought additional attention to the market, the breakthrough in the technical aspect, especially the recovery of control points and the strong bullish volume, is key to determining whether Dogecoin can successfully break through the consolidation and launch an assault towards the target of 0.26 USD. Current investors should adopt a cautiously optimistic attitude and wait for the market to provide clear volume and price signals.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.