Dogecoin (DOGE) experienced significant selling pressure this week, with its price dropping approximately 7% over the past seven days. It is trading around $0.13, down about 5% in the past 24 hours. Despite short-term pressure, market analysis suggests that its long-term technical structure remains solid, with a key resistance level around $0.50.
Analysts point out that if the price can effectively break through the critical $0.48–$0.50 zone, it would confirm a long-term bullish pattern, potentially opening up further upside, with the first target at $1.88.
From a technical perspective:
Since its 2021 peak, Dogecoin has been trading within an expanding triangle consolidation range, with the current price again approaching the lower trend support. On the weekly chart, a multi-year "cup and handle" pattern has largely formed, and the recent pullback has not disrupted this structure. With shrinking volume and recovering momentum indicators, the high-timeframe RSI has retreated to near the neutral level of 50, similar to the conditions before the 2021 surge. Meanwhile, the weekly and monthly MACD are nearing a bullish crossover, hinting at a potential trend reversal.
Once a breakout above the $0.50 resistance is confirmed, the subsequent move could unfold in phases!
The first target lies in the $0.72–$0.88 range, which aligns with previous highs and historical test levels. Mid-term, it could further test $1.80–$2.20. If market sentiment remains optimistic, the long-term technical structure even leaves room for prices to potentially reach $4–$6.
In the short term, the 4-hour chart suggests Dogecoin may be forming an "inverse head and shoulders" pattern, often seen as a trend reversal signal indicating weakening downward momentum and a potential rebound. Traders note that if it can hold above key resistance levels, the price might enter an accelerated upward phase.
Beyond technicals, Dogecoin is making progress in practical applications:
Argentina has approved the use of Dogecoin for paying certain taxes, and airline Alternative Airlines has begun accepting DOGE for flight tickets. These developments show that Dogecoin is gradually expanding its real-world use cases, providing fundamental support for its ecosystem growth.
