Is it time to buy the dip for Dogecoin (DOGE)? Aiming for $1.16, this time it's for real

After a week of selling pressure and market fluctuations, Dogecoin (DOGE) shows signs of a rebound. After breaking below the support level of $0.1750 in early May, this meme coin rebounded strongly over the weekend. On-chain data suggests that it may have bottomed out and is likely to initiate a strong rebound.

The hourly K-line chart shows that the DOGE price has successfully broken through a clear downward channel, ending a short-term downtrend that lasted for several days. The key breakout point is around $0.1720, which had previously formed strong intraday resistance.

After the breakout, Dogecoin's price quickly rebounded above $0.1750 and has maintained a narrow range of fluctuations. The hourly chart shows a bullish pattern, marking the first technical strength signal since DOGE declined from $0.182 at the end of April.

From the current support levels, $0.1685 and $0.1650 remain key downward observation ranges. Additionally, $0.1780, $0.1850, and the psychological level of 20 cents constitute resistance levels above. Once these price points are broken, Dogecoin may advance towards $0.50 or even higher prices in the medium term.

After forming support around $0.165, Dogecoin may have completed its bottoming process. Compared to the over 500% surge in October 2024, the current market is forming a similar price structure. From a higher time frame perspective, altcoin bottoms often follow Bitcoin's bottom, and this movement may replicate historical upward logic.

Given the current spot positions and the risk characteristics of existing price levels, Dogecoin's price exhibits high cost-performance asymmetrical investment value. The relative strength index (RSI) on the 2nd-day K-line chart shows a mild bullish divergence pattern, which often indicates an impending reversal in the macro trend.

At the beginning of this week, a large transfer of approximately $17.5 million worth of 100 million DOGE flowed into a private wallet, while outflows from exchanges surged, which is generally seen as a positive signal for long-term holding.

From the wallet distribution perspective, wallets holding between 10 million to 100 million DOGE continue to maintain a diversified buying rhythm, while large wallets holding between 100 million to 1 billion DOGE have shifted to a net buying state since April 8.