Dogecoin price poised for a surge if key support level holds

Dogecoin’s (CRYPTO:DOGE) price has been under downward pressure recently following a bearish August, mirroring struggles in the broader crypto market.

As various cryptocurrencies seek support levels for a potential recovery, Dogecoin's move towards key support levels suggests a possible rebound that could significantly increase its price.

According to Simon, a crypto analyst on TradingView, Dogecoin has formed a falling wedge pattern, a technical indicator that could signal a breakout if the price remains stable.

The first critical support level for Dogecoin is at $0.096.

Holding above this level is essential for maintaining any bullish momentum.

At this point, the analyst suggests that Dogecoin could break out of its descending resistance line.

A successful breakout from this support level might lead to a 50% rally, with the next major resistance target at $0.151.

If Dogecoin manages to surpass this resistance, it could pave the way for further gains, potentially pushing the price to around $0.19—a 100% increase from its current level.

However, there is also a downside risk to consider.

If Dogecoin fails to hold the support at $0.096, the price could see a breakdown, leading it lower.

The next support range is between $0.080 and $0.087.

Simon emphasizes the importance of maintaining momentum to sustain the bullish scenario.

A daily close below this support range could invalidate the positive outlook and result in further declines.

Investors should closely monitor Dogecoin's price around these critical support and resistance levels.

While there is potential for a significant rally if support holds, there is also a risk of further losses if momentum weakens and the price falls below key support points.

At the time of writing, the Dogecoin price was $0.09522.