Dogecoin (DOGE) bounced back on Monday in a subdued session, rising to around $0.086 after falling to a multi-year low of $0.077 over the weekend.
But in an analysis of memecoin’s future, market analyst Ali Martinez issued a technical update saying that DOGE is “in a very difficult place.” In his opinion, the next phase could follow one of two clear paths, formed by long-term top charts and chain activities.
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Martinez he said Dogecoin is currently resting on the high demand that has already fueled massive expansion. He planned the implementation to be more than a short-term iteration, demonstrating the long-term stability of the system.
According to his analysis, since the first days of DOGE, the stock has been going through a process of expansion, many years of integration – times that prevent flexibility and “transfer” the supply of time. Those parts, he says, often come in large cattle markets.
Martinez says that, at the moment, Dogecoin is testing a real technical point at $0.081, which is slightly lower than the current trading price. This level is equal to the average limit of the average a the same five-year strategy.
The expert confirmed that this important level has support behind the scenes on the chain. He mentioned the UTXO Detected Price Distribution (URPD), which tracks the exact price levels at which the last published tokens moved.
In the explanation of Martinez, there is a large group around $ 0.081: more than 30 billion Dogecoin tokens they were last updated on the same channel.
The result, he says, is an increasing layer of history that often acts as an emotional and financial “firewall,” making the landscape difficult for marketers to break through.
Two images of Dogecoin
Identifying the key areas to watch, Martinez highlighted the level of $0.081, the active area where the URPD volume group intersects with the central channel. The second level is $0.058, which they call the absolute multi-year trend.
He then explained two things that could happen after that. Under Scenario A, the $0.081 volume continues to absorb market availability. If the treatment ends, Martinez believes that the structure will be gradually restored and expanded back to the higher goals.
Scenario B is more conservative. Martinez said that if the economic headwinds intensify and Dogecoin closes weekly below $0.081, the chart pattern may change to what he called a long-term price correction.
In such a case, the indicator can be pushed to the bottom of the macro channel, going directly to the $0.058 support floor – the multi-year level that he indicated as. the final foundationwhich would also mean a 32% drop for memecoin.
Graphic design created by OpenArt; TradingView.com chart
