Dogecoin (DOGE) is trading below $0.17, with a slight recovery after fluctuating between $0.13 and $0.25 since February.
Despite the sideways movement, DOGE remains the 7th most traded cryptocurrency by 24-hour trading volume. Investors continue to monitor whether the memecoin can reclaim the significant psychological level of $0.25.
The daily chart shows DOGE is tracking a double bottom pattern, a classic reversal signal, with a base support level of $0.15 established in recent weeks. This long-term setup suggests the potential to rise to $0.25, a target that could materialize sooner than expected.
Over the past two months, DOGE has been confined within a descending channel, a pattern indicating potential bullish breakout signs.
Analyst Trader Tardigrade posted an analysis on X, highlighting the decisive move above the 50-day trendline, followed by a successful retest and continued upward trend.
On the lower timeframes, this change is marked by higher lows and higher highs, signaling a potential reversal from the previous downtrend.
Supporting this, the on-chain UTXO Realized Price Distribution data shows that the largest holder group is at $0.177, holding 8.94% of the supply. A strong close above this level could pave the way towards the next resistance at $0.206 (7.54%) and potentially even $0.36 (3.83%), fueling optimism.
Memecoin continues to outperform other sectors.
Recent on-chain data has painted a mixed picture. Glassnode's post on X shows that DOGE holders are experiencing the highest losses in months, a clear indicator of profit-taking or sell-off at the current price level, indicating short-term pressure.
However, the memecoin has dominated the past 90 days with an impressive profit of 56.67%, far outpacing the overall crypto market.
This implies potential hidden bullish momentum for DOGE. Historical patterns show that memecoins can rise 300%-500% during peak hype cycles, as seen at the end of 2024.
Thus, DOGE is at a crossroads, with technical indicators suggesting a potential move towards $0.25 in the short term through a double bottom pattern and a trendline break. Meanwhile, the momentum of the memecoin indicates long-term growth driven by retail enthusiasm. A decisive move above $0.177 could be the next technical confirmation.
A breakout above $0.25 could become reality by the end of 2025, especially if Bitcoin's next advance amplifies the price surges in the altcoin space. Therefore, the current loss phase may be consolidation before a breakout driven by hype.