Dogecoin shows signs of a potential trend reversal after weeks of price correction. Analyst predicts daily gain up to 30%.
According to a TradingView chart shared by market analyst MMB Trader, the meme coin tests major support at the 0.5 and 0.61 Fibonacci retracement levels, specifically at $0.218 and $0.202.
The analyst noted that these levels are strong enough to halt the ongoing correction and potentially trigger a renewed upward move. For context, Dogecoin is trading at $0.2247, a 0.9% increase in the past day, increasing the monthly uptick to 38%. At this price, Dogecoin is slightly above the retracement levels.
In technical trading, Fibonacci retracement zones often serve as areas where price consolidation ends and trend continuation begins, making them significant markers for possible price rebounds.
Channel Breakout Signals Bullish Momentum for Dogecoin
The chart also indicates that Dogecoin has broken out of a descending channel, which had confined its price action since 2024. This breakout at $0.22, which occurred earlier this month, is considered a positive technical signal, often interpreted as the end of a downtrend.
MMB Trader marks this breakout point in the chart with a label reading: “Here, when the channel resistance breaks to the upside.” Expectations of a significant price pump accompany the breakout if market volume increases.
Dogecoin’s Price Targets and Potential Gains
The analysis projects that Dogecoin could surpass its high of $0.42 recorded in January. If momentum builds, price targets of $0.75 and $1 are within reach. The chart also identifies $0.405 as a key resistance level. A sustained move above this level could accelerate buying activity.
MMB Trader anticipates a return of large green candles on the daily chart, with potential gains ranging from 20% to 30% per session if current support holds and trading volume increases.
Another analyst, TraderLeo, also noted $0.206 and $0.213 as the accumulation points for Dogecoin. TraderLeo identified this range as a key support zone following a prolonged downtrend. Historical price action shows DOGE has previously rebounded from this area, and current volume levels suggest renewed buyer interest.
Meanwhile, on the 4-hour chart, BitGuru highlighted that a bounce from around $0.21389 on a 4-hour chart could signal a possible bullish reversal if momentum continues. Furthermore, a breakout above this range could trigger a 28% rally toward $0.240 to $0.250.
Other analysts, including Kamran Asghar and Javon Marks, have also identified recurring bullish patterns, such as double bottoms and accumulation zones. Marks projected a potential long-term move of up to 226% toward the previous all-time high of $0.73905, and even higher targets at $1.42 and $2.11.
Adding to these bullish sentiments, crypto analyst Ali Martinez noted that Whale wallets have accumulated 310 million Dogecoin in the past day, increasing their total holdings from 72.65 billion to 73.34 billion.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
