Dogecoin (DOGE) has been falling recently, but some people are getting more excited as it drops. Analyst Will Taylor publicly stated that he would buy Dogecoin if it fell to $0.078.
"In my opinion, this is the best risk-reward position since October 2023," he wrote next to the chart. On that chart, Dogecoin is approaching the lower trendline of its multi-year trend.
📉 It's not about blindly buy the dips, but rather a "conditional" investment strategy.
The strategy is clear: don't rush in now, but wait for the price to fall to a specific area before taking action. The focus isn't on a single signal, but on the convergence of multiple key factors: the price has returned to its historical accumulation zone, is in a high-volume trading area, is approaching the lower boundary of a multi-year pennant pattern, and the weekly RSI shows that downward momentum is weakening.
For technical analysis, such a "multiple signal overlap" position is often more valuable for reference than a single indicator.
📊 Weekly RSI signal: Momentum is weakening.
Two days ago, Taylor explained his logic in detail: "Dogecoin's technicals have become very interesting again. The weekly RSI is narrowing, and the downward momentum has clearly weakened. We are retesting the previous accumulation/support area, and we are at the bottom of a larger range (bull flag pattern). In addition, the current price is also in the area with the highest trading volume - such positions are usually easy to become reversal zones."
In his view, the narrowing RSI indicates that selling pressure is slowing down, not accelerating. This provides a basis for a potential rebound.
🚀 If the support level holds, the potential upside is over 348%.
The chart shows a path from the lower support area to the upper boundary of a wider range, with a potential upside of approximately 348% .
He emphasized that this is merely a structural reference, not a prediction. However, its significance lies in the fact that if DOGE can hold this position instead of falling below it, then the upside potential is indeed considerable.
"If you accumulate in batches and only trade within the range, the potential return can reach 300%. From a technical point of view, this is a very suitable place to buy spot."
As of press time, Dogecoin is priced around $0.09. There's still some room for it to move towards the $0.078 area.
His strategy was clear: not to chase the highs, but to wait for the price to return to a key area before making a move. This position combines multiple signals, including historical support, a high-volume trading area, a pattern boundary, and momentum exhaustion, making it a noteworthy point in the past two years.
Of course, technical analysis is only one part of the story. A true rebound will require the cooperation of the broader market and a recovery in market sentiment.
