Dogecoin (DOGE) has recently attracted attention with its price movement closely resembling the pattern before the explosive surge in early 2021, igniting market expectations for a new round of increases. Currently, Dogecoin is retesting a key support level of $0.168, which had previously become the market bottom in mid-April, successfully buffering a 35% drop since the mid-May peak.
Technical aspect: Classic reversal pattern emerging.
An anonymous analyst pointed out that Dogecoin is forming a 'double bottom' pattern on the 4-hour chart, which is a classic bullish reversal signal. Historically, similar patterns often indicate a transition from calm consolidation to explosive upward movement, with the most famous example being Dogecoin's 15-fold surge in 2021. The analyst particularly emphasized the support level of $0.168, believing this will be the starting point for a rebound that could push Dogecoin above $0.25.
In addition, on the weekly chart, Dogecoin has also shown a 'cup and handle' pattern lasting four years. $0.168 is not only a short-term support but also a key defensive line for the long-term trend. If the breakout is successful, technical analysis indicates that the price could rise by 345%, reaching a target of $0.75.
However, technical indicators also bring some uncertainty. The 'golden cross' in May failed to sustain, and a 'death cross' appeared in June, with the MACD indicator showing bearish pressure and RSI remaining low at 42, indicating insufficient buying momentum. If the price falls below $0.168, Dogecoin could decline further by 47% to the support level of $0.09.
Besides the technical aspects, the fundamentals of Dogecoin are also showing positive signals. Recently, multiple Dogecoin ETF applications are awaiting approval, which could inject new capital into the market. Additionally, analyst Ali Martines revealed that around June 15, a whale accumulated over 800 million DOGE in 48 hours, demonstrating confidence in the $0.168 support level.
More importantly, Elon Musk's continued support remains a significant driving force for Dogecoin. Musk previously boosted Dogecoin's surge in 2021 through tweets and public statements, and recent rumors suggest that the X platform may integrate Dogecoin as a payment method, further enhancing its practical application value.
Future outlook.
Dogecoin is currently at a critical moment. The technical aspects show bullish potential, but momentum indicators signal risks. If the price holds above $0.168 and breaks resistance, the rebound could aim directly for $0.75; if it falls below support, it could dip to $0.09. Considering the ETF applications, whale accumulation, and Musk's potential support, Dogecoin's future trend is worth close attention.
