After the latest market pullback, Dogecoin is attempting to hold a crucial support area to open the door for a recovery rally. However, some analysts have suggested that the cryptocurrency\u2019s bleeding may not be over and a move to lower levels looms.<\/p>\n
On Friday, Dogecoin saw another 4.2% intraday decline<\/a> to from the $0.126 area amid the ongoing market volatility. The cryptocurrency has retraced over 50% from the early October highs, losing multiple key support zones in the past two months.<\/p>\n After losing the $0.135 level nearly two weeks ago, DOGE has been the $0.120-$0.135 price range, failing to break past the range\u2019s high despite various attempts. Now, the largest memecoin by market capitalization is attempting to hold the crucial $0.120 support zone to prevent further bleeding<\/a>.<\/p>\n Therefore, some market observers have advised caution during the last week of the year. In an X post, analyst More Crypto Online affirmed that Dogecoin \u201cis still a falling knife\u201d as it appears that its corrective move is not done yet.<\/p>\n \u201cThere\u2019s no evidence that wave B has bottomed,\u201d he explained, which suggests that a 20% drop toward the next key supports, the $0.096 and $0.08 levels, could be likely. Per the post, \u201cCaution is recommended until the price shows a first micro 5-wave move to the upside.\u201d<\/p>\n Similarly, analyst Crypto Jobs warned<\/a> that investors should stay cautious as Dogecoin does not display a bullish reversal structure and has weak buying volume, unlike multiple other altcoins.<\/p>\n He explained<\/a> that momentum is bearish despite holding the key $0.12 level, adding that, as long as DOGE\u2019s price stays under the $0.14-$0.15 area, bulls won\u2019t be in control and the bearish set up and downtrend structure will remain intact.<\/p>\n No buy pressure at the moment, without volume. No bull structure\u2026 Under the main downtrend & channel, seeing another dump toward the $0.100 \u2013 $0.09500 lower support looks realistic. Sideway phase ongoing on the short term [H4 outlook]. We may also see some bullish move before a possible next wave downward.<\/p>\n Market watcher BitGuru considers<\/a> that DOGE\u2019s deep correction is completed. He pointed out that the cryptocurrency is currently sitting in a major demand zone, between the $0.120-$0.130 levels, where liquidity has already been swept.<\/p>\n Based on this, he forecasted that a reclaim of the late November levels could set the stage for a recovery<\/a> rally toward the $0.18 resistance. On the contrary, failing to hold the current levels would hint that Dogecoin will continue in a prolonged consolidation phase.<\/p>\n Meanwhile, Trader Tardigrade highlighted<\/a> that the cryptocurrency\u2019s price has reached the target of its previous symmetrical triangle pattern after breaking down from the formation earlier this month.<\/p>\nDOGE\u2019s Price Breakdown Imminent?<\/h2>\n