- Analysts warn Dogecoin bears to be cautious as technical patterns suggest a potential price reversal.
- Key support levels and bullish formations indicate a possible rebound, with targets as high as $0.88 or even $7 in the long term.
Dogecoin (DOGE), the popular meme-based cryptocurrency, has been on a downward trend, raising concerns among investors. The token recently dropped 6.7% from a weekly high of nearly $0.20 to a low of $0.16, reflecting broader market volatility. Over the past 30 days, DOGE has seen a more significant 20% decline. However, prominent analysts are cautioning against excessive bearish sentiment, pointing to technical indicators that suggest a potential bullish reversal.
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Analyst Cautions Against Bearish Sentiment
A well-known TradingView analyst, “Cobra Vanguard,” has identified a technical formation that could signal an impending price surge. According to his analysis, DOGE appears to be forming a cup and handle pattern—a bullish structure suggesting long-term accumulation and a potential breakout.
The “cup” portion of this pattern began forming in mid-2021 after Dogecoin’s price peak. The bottom of the cup was around $0.04 in mid-2022, and since then, the token surged to $0.47 in December 2024 before retracing to its current level. The “handle” phase is characterized by price consolidation, which often precedes a breakout.
In addition, the AB=CD harmonic pattern aligns with the historical price action of DOGE, suggesting a potential target of $0.88 if the bullish scenario plays out. This has led the analyst to warn short-sellers to “be careful,” as a reversal could catch them off guard.
Long-Term Support Indicates a Potential Bounce
Another respected analyst, Ali Martinez, has highlighted a different bullish pattern in Dogecoin’s price movement. He points to an ascending channel formation, consisting of three trendlines—representing the lower, middle, and upper boundaries.
Historically, DOGE has respected the lower trendline, bouncing upward each time it has tested this dynamic support level. At present, Dogecoin is once again testing this crucial support zone. If the pattern holds, a rebound could be imminent, with Fibonacci retracement levels indicating a possible bullish target as high as $7 in the long run.
Crucial Levels for Dogecoin’s Recovery
Despite the bullish signals, analysts warn that DOGE must reclaim key resistance levels to sustain any upward movement. Crypto analyst ‘readCrypto’ highlights $0.1895 as a critical price threshold. Earlier this month, Dogecoin fell below this level on March 9, attempted a recovery, but struggled to maintain its footing. A decisive breakout above this resistance would be necessary for a sustained rally.
Final Thoughts
While Dogecoin’s recent decline may have shaken investors, technical indicators suggest that the current bearish trend could be temporary. The cup and handle pattern, harmonic price movement, and long-term support levels indicate a possible rebound. However, investors should remain cautious, as market conditions remain unpredictable.
