After several months of decline, Dogecoin's price is entering a new bullish phase. Through technical analysis of the daily candlestick chart, we find that this popular meme cryptocurrency is showing signs of a trend reversal, suggesting that its momentum is shifting from bearish to bullish.
Analysts have marked daily trend reversals on the Dogecoin chart.
A well-known cryptocurrency analyst named Trader Tardigrade emphasized that the trend reversal of Dogecoin has been confirmed. This week, he pointed out in a post on X (formerly Twitter) that Dogecoin's daily chart has shifted from a downward trend to an upward trend. Technical analysis of Dogecoin's price movements also corroborates this statement.
The price of Dogecoin recently broke through a downward trend line that had persisted for several weeks. This breakout occurred on April 22, when Dogecoin closed above $0.165 on the daily chart. This breakout is the first step for the coin to escape its bearish trajectory.
Shortly after breaking the downward resistance line, Dogecoin's price pulled back between April 23 and April 24 to retest the same trend line, but this time from above. Importantly, the previous resistance trend line held strong during the retest, becoming a new support level. After the successful test, Dogecoin regained upward momentum, marking the continuation of a new upward trend.
This breakout, retest, and continued pattern is a classic technical confirmation of a trend reversal. Successfully retesting the trend line further confirms that the bullish shift is genuine and not a false signal.
Bullish target: Reach $0.25 by early May
With the daily chart showing an upward trend, the focus now is on how far this new upward trend will push Dogecoin. According to trader Tardigrade's analysis, Dogecoin may continue to rise in the coming days and may soon break through the $25 mark. As shown in the chart shared by trader Tardigrade, Dogecoin's next target price is around $0.25 in the first week of May.
If Dogecoin can break through $0.25, it will be an important milestone, as Dogecoin has been trapped in a downward trend for over 10 weeks. Therefore, breaking through $0.25 will mark Dogecoin's highest price since the end of February and a strong rebound from recent lows around $0.14 to $0.15. This trend also indicates that Dogecoin has risen about 51% from the breakout level of $0.165.
However, $0.25 is just a short-term target. In another analysis, trader Tardigrade pointed out the long-term chart of Dogecoin and emphasized its rounded bottom pattern. The attached chart shows that in previous cycles, Dogecoin's price formed a rounded bottom pattern before entering a parabolic upward trend. This repeating pattern has appeared again in the monthly timeframe, indicating that Dogecoin may be on the verge of another significant breakthrough. In this case, the long-term target price is $2.8.
