Crypto analyst BitGuru has revealed that the Dogecoin price just swept a key support level following the Black Monday crash. Based on this, the analyst predicted what could happen next and mentioned why the foremost meme coin could retest $0.2 again.
Dogecoin Price Retests Key Support After Black Monday Crash
In an X post, BitGuru stated that the Dogecoin price just swept key support near $0.143 and is showing signs of a bullish reversal from the oversold zone. The analyst predicted that a strong bounce could follow, with targets at $0.16, $0.18, and a possible retest of $0.205 as momentum builds for the leading meme coin.
The Dogecoin price had crashed to this key support following the Black Monday crash on April 7, led by Bitcoin, which dropped below $75,000 on the day. Given the strong positive correlation between both assets, DOGE also witnessed a significant crash, sharply dropping from around $0.17 to $0.14.
Indeed, the Dogecoin price could soon witness a bullish reversal as the Bitcoin price has rebounded, touching $80,000 on April 8. A sustained upward trend for the flagship crypto would also lead to a reversal for DOGE, which could touch the psychological $0.2 level as BitGuru predicted.
However, from a macro perspective, the Dogecoin price isn’t yet in the clear, and there could be obstacles to this bullish reversal. Donald Trump has threatened to impose an additional 50% tariff on China, and China has also promised to retaliate if the US president carries out his threat.
Trump’s tariffs are what have led the Dogecoin price and other crypto assets to crash in the first place, and a back-and-forth of this global trade war would only likely continue to harm these assets.
DOGE Forming Bullish Divergence
Crypto analyst Kevin Capital revealed that the Dogecoin price is forming a “clean” bullish divergence on the daily time frame. He claimed this is something to keep a close eye on, as it could determine the foremost meme coin’s trajectory.
Meanwhile, Kevin Capital also noted that the Dogecoin price dropped again to test the bull market structure’s “lines in the sand.” Although it broke below the structure, it recovered and closed the daily candle slightly above this support level.
This bullish market structure, around the $0.14 area, is significant, as a drop below that level could mark the end of DOGE’s bull run. Crypto analyst Master Kenobi had also previously warned that the Dogecoin price cannot afford to lose the support trendline at $0.14, indicating that the meme coin would enter a bear market if that happened.
At the time of writing, the Dogecoin price is trading at around $0.15, up over 5% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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