As the early-week upward momentum slowed, Dogecoin (DOGE) fell 5.5% intraday, retreating near recent lows. Some analytical views suggest that if the price can stabilize at this level, DOGE may see a significant short-to-medium-term rebound.
Key Support Tested Again: Can the Path to $1 Restart?
On Thursday, DOGE followed the broader market's pullback to the $0.136–0.138 range. Since the Q4 correction, its price has fallen about 50% from its high and has been oscillating between $0.130–0.155 in recent weeks.
Analyst Trader Tardigrade pointed out that DOGE is currently testing a key upward trendline extending from 2022, a level that has historically served as the starting point for subsequent significant rallies:
After the first test, DOGE rose 87% in 8 weeks;
After the second test, it gained over 210% in 10 weeks;
Following the test in Q3 2024, DOGE surged 442% in 14 weeks, hitting the annual high of $0.48;
If this retest successfully holds, the analyst believes DOGE could move toward the $1 mark, with a potential gain of up to 610% in the medium term.
Technical Indicators Warm Up, Short-Term Rebound Signals Emerge
The trader also observed that DOGE's daily MACD has formed a bullish crossover, indicating a potential trend reversal from decline to rise. Similar signals led to new阶段性 highs in Q2 and Q3 of this year.
Other market observers have provided structural reasons for short-term optimism:
Chart patterns suggest DOGE may be forming a "falling wedge" bullish reversal structure since last October. A breakout above the resistance could target $0.20 (a potential 60% gain). Additionally, the price has once again touched a historical demand zone on the weekly chart. If support holds in this area, a rebound toward $0.30 (a ~115% gain) is possible.
At the time of writing, DOGE is trading at $0.137, down 8% for the week. The market is closely watching the performance of this critical support zone, which could determine whether DOGE can initiate another strong rally.
