Dogecoin may provide a buying opportunity on dips—Dogecoin's price prediction is now focused on a healthy correction rather than a complete reversal.
The DOGE bull market may continue, with Dogecoin's price outlook showing a 'great risk-reward'.
Despite macro uncertainty dampening enthusiasm for high-risk investments like meme coins, the 8% rebound over the weekend may signal the beginning of a new DOGE upward trend.
As the suspension period for 'reciprocal' tariffs ends and tariffs are imposed on 92 countries starting August 7, risk appetite has weakened due to concerns about a mid-2025 bear market reoccurring.
However, speculation around possible interest rate cuts in September remains high, as lower borrowing costs could stimulate new inflows into risk assets like cryptocurrencies.
Is Dogecoin ready to turn the tables?
Dogecoin's price has broken above the 'bear market trend line' that has been in a downward trend since the end of July, and is currently retesting the 'bull market' support zone.
Coinglass derivatives data shows that speculative demand has risen again, with today's open interest up 2.43% to $3.15 billion, as traders actively monitor price trends.
Exchange data shows that these traders are preparing for the continuation of a bullish trend, with a Binance long/short ratio of 2.98 and 75% of traders taking long positions.
Dogecoin Price Analysis: Is the bull market ready to continue?
The breakout of the 'bear market trend line' has formed a broader descending wedge pattern, becoming the upper limit of its consolidation.
The successful retest of this trend line has now confirmed it as a support level, marking higher lows and validating the wedge breakout structure.
Momentum indicators are flashing green. After a brief decline, the RSI has now risen above the neutral line at 52, indicating that buyers have taken control.
The MACD line is showing a similar situation; although there is slight volatility, it remains ahead of the signal line, indicating a strong short-term upward trend is taking root.
If this momentum continues, the target for the wedge breakout is to break the resistance level at $0.25, potentially gaining 25%.
If this level turns into a support level, the rally could extend to the July mid-high of $0.2875, a 38% increase, clearing the path for the continuation of a bull market.
