The DOGE chart closely reflects the pattern often seen before major breakouts, driving short-term Dogecoin price predictions reminiscent of the early 2021 rally.
This event comes as the meme coin tests the historic support zone that marked the market bottom in mid-April—a crucial moment to alleviate the 35% decline since the local peak in mid-May.
Looking at the macroeconomics, recent comments from Fed Chair Jerome Powell on the resilience of the U.S. economy—despite ongoing instability—could drive a return to a broader risk appetite.
Technical And Historical Fundamental Factors 'All Point Towards' A Bullish Move
The famous analyst X, under the pseudonym 'Batman', has highlighted the developing double bottom pattern on the 4-hour chart—a classic reversal pattern.
They note this horizontal consolidation as a historical sign of quiet momentum towards a breakout move, with the most prominent example being the 15-fold surge of Dogecoin in 2021.
The analyst particularly focuses on the 'key support level' around $0.168 as the starting point of a stair-step bullish wave, with a four-wave move pushing DOGE above $0.25.
The outlook is not just technical. Fundamental catalysts 'are all lining up' with multiple DOGE ETF applications awaiting approval and continued accumulation from whales.
On June 15, analyst Ali Martines reported that whales accumulated over 800 million DOGE within 48 hours following the initial test of the $0.168 support level—a testament to the reversal.
More importantly, Batman continues to receive endorsements from Elon Musk as rumors circulate that he will accept Dogecoin for payments on platform X.
Musk's historically significant influence—having propelled DOGE to prominence in 2021 and igniting the revival in late 2024 through the DOGE initiative—continues to act as a key catalyst.
Dogecoin Price Analysis: How High Could the Reversal Go?
Strength on lower timeframes further reinforces the bullish argument that the $1.68 support level could lead to the breakout of a massive 4-year cup and handle pattern.
The $0.168 level now serves as the last line of defense for the long-standing support trendline that has marked local bottoms since mid-2024.
This trendline also intersects with the upper resistance of the handle, creating a high-risk confluence zone where breakout pressure is forming.
With a strong bounce, the breakout would target a technical level over 345% higher than the current price at $0.75 based on the Fibonacci extension level of 1.618.
However, momentum indicators remain skeptical that Dogecoin has sufficient support to drive the bullish move.
The golden crossover from May has proven not to last long as the MACD widened the gap below the signal line after the death cross in early June—a sign of a long-term downtrend prevailing.
The RSI indicator also shows weak buying pressure, sitting below the neutral line at 42.
If the $0.168 level fails, Dogecoin price could drop 47% to the next major support level around $0.090, a level last tested during the mid-2024 correction.