Dogecoin's price has dropped from its late July high of $0.28 over the past few days and is currently testing key support levels near $0.20. Despite its short-term weakness, the meme coin still enjoys structural bullish expectations. As of this writing, several chart patterns and experts indicate a potential rise towards the expected dollar level before the end of 2025.
Dogecoin tests support level amid market weakness
Currently, Dogecoin's price has fallen today below its 50-day and 200-day moving averages, trading at $0.207. This price drop is attributed to recent macroeconomic volatility, such as tariffs imposed by President Trump on imports and a more cautious Federal Reserve stance.
This has led to a low-risk environment, prompting capital flight from high-risk cryptocurrencies to safer assets. As a result, the DOGE/USD price has faced pressure, with traders closely monitoring these support levels for potential reversal signals.
The Relative Strength Index (RSI) indicates a reversal in the DOGE price chart over 4 hours
Despite the decline, momentum indicators on shorter timeframes suggest a potential bullish reversal. Recent analysis of DOGE's price on the 4-hour timeframe shows that the RSI has bounced above the 50 level, which is usually considered an early signal of momentum change.
This recovery, described as a 'sudden surge', indicates that the meme coin may enter a new medium-term bullish trend as buyers begin to enter. Market watchers are now looking for confirmation of the continuation of this trend in the coming days.
Trendline support and the wedge formation fuel expectations for DOGE's price at $1
Looking at the broader daily chart, Dogecoin's price forecasts remain positive. The coin continues to adhere to a rising trend support line while facing a curved resistance area. Analysts believe this technical structure favors a steady recovery.
On the weekly timeframe, the DOGE price chart shows an expanding ascending wedge pattern, which is generally considered a bullish continuation pattern. If DOGE's price exceeds $1 as expected, it may see a move towards $1.40 by the end of the year. These levels support long-term price movement, maintaining a bullish structure over the past few months.
Smart Money aims for the long-term rise of Dogecoin
While retail trader sentiment remains mixed, the overall forecasts for Dogecoin's price suggest that smart money may be quietly accumulating. The convergence of multiple bullish signals across timeframes, from the RSI rebound on the 4-hour chart to the expanding wedge pattern on the weekly chart, reinforces confidence in the continuation of the rise.
If the bullish momentum continues, Dogecoin's price may quickly reclaim its July high and move towards the psychological resistance area at $0.40, $0.60, and finally at $1.
