An analyst has explained how Dogecoin falling to the lower level of a Parallel Channel could trigger a notable surge, should the support floor hold.
Dogecoin May Have Been Moving Down A Parallel Channel RecentlyThe upper level of the pattern tends to be a source of resistance, while the lower one that of support. Together, the lines keep the price trapped in the region enclosed by them. In the case of an escape, the asset may see a sustained move in the direction of the break. That is, a surge above the channel can be a bullish sign, while a drop under it is a bearish one.
Now, here is the chart shared by the analyst that shows the Parallel Channel that Dogecoin has potentially been trading inside for the last few years on the monthly timeframe:
As displayed in the above graph, the 1-month Dogecoin price retested the upper level of this Parallel Channel at the end of 2024, but the memecoin ended up finding rejection. During most of 2025, the channel’s middle line held tight for DOGE, preventing further bearish action. In the last quarter of the year, however, the level finally gave out, and since then, the coin has seen an extended drawdown.
Currently, the asset is still a notable distance over the pattern’s lower level, but if its trajectory from the last few months continues in the near future, it’s possible that it might close the gap. “I’m looking to buy the dip at $0.0537,” noted the analyst. “If this floor holds, we could see a 200% rally back to the mid-range at $0.16.”
It now remains to be seen whether Dogecoin will end up retesting the support level of this Parallel Channel in the coming months, and if it does, whether the cryptocurrency will find a bottom at it.
Dogecoin has plunged to the $0.090 level following the continuation of bearish momentum over the weekend.
