Dogecoin has rebounded strongly after hitting an important assist degree, reinforcing bullish expectations specified by a current 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 method to a key assist degree in mild of final week’s crash. This notable value crash noticed Dogecoin lose its assist 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 assist at $0.16896, the place it has the best probability of bouncing upward.
As predicted, DOGE discovered stability simply earlier than hitting this degree and has since trended upward, now within the strategy of forming a Cup & Deal with sample. This traditional bullish construction usually precedes important breakouts, with the analyst now eyeing a transfer above resistance ranges as affirmation.
Notably, the subsequent essential check at this level is at $0.29124. The response to this resistance can be essential in figuring out whether or not DOGE can maintain its restoration and push towards new highs. A decisive breakout above this degree 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 assist, the analyst outlined a long-term bullish situation, projecting a rally in the direction of $0.50 and $0.60. A transfer to $0.50 would mark Dogecoin’s highest value degree 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’s additionally the opportunity of a retest earlier than the subsequent leg of the rally positive aspects traction.
The broader market sentiment additionally performs a job in Dogecoin’s trajectory. On the time of writing, Bitcoin and different main cryptocurrencies are beginning to get better from final week’s decline after the announcement of a US crypto reserve. The bullish atmosphere might assist Dogecoin’s climb to new highs, and the meme coin might simply attain a brand new all-time excessive 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% prior to now 24 hours, however nonetheless down by 5.3% in a seven-day timeframe.
Featured picture from iStock, chart from Tradingview.com
