Dogecoin has rebounded strongly after hitting a vital help stage, reinforcing bullish expectations specified by a latest technical evaluation. The favored meme cryptocurrency, which suffered a pointy decline final week, has defied considerations of an prolonged decline by bouncing off the $0.16896 reversal zone and now climbing towards greater ranges. Now buying and selling at $0.22, Dogecoin’s value motion seems to align with a Cup & Deal with formation, which is setting the stage for an prolonged rally.
Dogecoin Bounces Off Key Reversal Zone
A crypto analyst on social media platform X highlighted Dogecoin’s approach to a key help stage in gentle of final week’s crash. This notable value crash noticed Dogecoin lose its help ranges round $0.20 and $0.20 in fast succession. With this, the analyst famous that the meme coin is approaching essentially the most essential help at $0.16896, the place it has the best probability of bouncing upward.
As predicted, DOGE discovered stability simply earlier than hitting this stage and has since trended upward, now within the strategy of forming a Cup & Deal with sample. This basic bullish construction usually precedes vital breakouts, with the analyst now eyeing a transfer above resistance ranges as affirmation.
Notably, the following essential check at this level is at $0.29124. The reaction to this resistance shall be essential in figuring out whether or not DOGE can maintain its restoration and push towards new highs. A decisive breakout above this stage might ignite additional bullish momentum and convey extra bullish value targets into play.
Subsequent Main Resistance Might Set off Rally Towards $0.50 And Past
Following the bounce from help, the analyst outlined a long-term bullish scenario, projecting a rally in the direction of $0.50 and $0.60. A transfer to $0.50 would mark Dogecoin’s highest value stage in years whereas additionally representing a big breakout past $0.48, the place it confronted rejection in December 2024. From right here, long-term targets are past $0.6 and a brand new all-time excessive above its present peak of $0.737.
Nonethless, Dogecoin nonetheless has hurdles to clear, notably at $0.29124. Even when Dogecoin bulls handle to interrupt above this barrier, there may be additionally the opportunity of a retest earlier than the following leg of the rally positive factors traction.
The broader market sentiment additionally performs a job in Dogecoin’s trajectory. On the time of writing, Bitcoin and different main cryptocurrencies are starting to recover from final week’s decline after the announcement of a US crypto reserve. The bullish surroundings might help Dogecoin’s climb to new highs, and the meme coin could easily reach a new all-time high earlier than the center of the 12 months.
On the time of writing, DOGE is buying and selling at $0.2178, up by 5.8% previously 24 hours, however nonetheless down by 5.3% in a seven-day timeframe.
Featured picture from iStock, chart from Tradingview.com