Despite the broader bullish sentiment in the crypto market, DOGE has faced persistent selling pressure. However, analysts suggest that this trend may soon reverse, with a potential rally pushing the price above the $0.30 mark.

A recent analysis by crypto expert TradingShot has highlighted a ‘channel down’ formation on Dogecoin’s chart. This pattern, often seen as a precursor to a breakout, indicates that the cryptocurrency could be approaching a significant turning point. If the pattern holds, DOGE may be primed for a strong rebound, potentially retesting key resistance levels in the near term.

Technical Indicators Point to a Potential Upswing

The ‘channel down’ formation is characterized by parallel downward-sloping trendlines, within which Dogecoin’s price has fluctuated. Historically, such formations are known to precede bullish breakouts, as assets eventually push through upper resistance levels. Crypto analysts believe that this two-month setup might also mean a more considerable bull flag for the ongoing market cycle.

The daily chart of Dogecoin has printed a ‘channel down’ pattern, suggesting DOGE price could potentially retest the $0.30 level. Source: TradingShot on TradingView

Another key indicator is the moving average of 200 days, which for the first time since October 2024. The 200-day MA is highly significant and considered a key support level, and touching it may imply that DOGE is likely bottoming out for recovery. Market participants are closely watching this level, as a sustained bounce from here could confirm the beginning of a new bullish phase.

Furthermore, DOGE has reached oversold territory based on several technical pointers. An oversold asset indicates an imminent price surge driven by increased buying pressure. If DOGE follows historical trends, it could soon start a powerful upward move, targeting new price milestones.

DOGE Expected to Rebound Toward $0.38

Analysts keeping tabs on the DOGE price have set their targets on a possible rally towards the $0.38 level, which coincides with the 0.786 Fibonacci retracement, a pivot point used to determine resistance and support levels by traders. Given that DOGE recently witnessed a sharp 40% drop, a recovery toward this price point would provide significant relief to investors.

Key price levels to watch for Dogecoin (DOGE). Source: JhonnyBrah on TradingView

Another factor supporting this optimistic outlook is the pattern of previous market cycles. In past rallies, Dogecoin has demonstrated a tendency to undergo deep corrections before surging to new highs. If this pattern repeats, DOGE could be preparing for a much larger move beyond its recent lows. A break above the $0.30 psychological resistance could signal further upside potential.

Watch – DOGECOIN Price Analysis Market Sentiment and the Road Ahead

In spite of the recent market volatility, Dogecoin is still among the most traded cryptocurrencies. Although the cryptocurrency has not been able to sustain growing momentum over the last couple of weeks, a strong break above the $0.30 level can restore positive sentiment and bring in further investments.

Dogecoin (DOGE) was trading around $0.26, down 4.03% in the last 24 hours as of press time. Source: Brave New Coin

Market sentiment is expected to play a huge role in determining the short-term trajectory of DOGE. Influencers like dominant trends in the cryptocurrency space, how Bitcoin is faring, and levels of investor confidence are likely to affect its price actions. Should Bitcoin keep accelerating, other altcoins, such as Dogecoin, are able to gain from higher liquidity and fresh buying pressure.

Bottom Line

Dogecoin’s price action over the past few days indicates that a breakout above $0.30 could occur at any time. It has formed an upside-down ‘channel down’ pattern supported by technical indicators such as the 200-day simple moving average and Fibonacci retracement levels, hinting at a near-term reversal. The markets still remain wild, and history could repeat itself, indicating that DOGE is due for a strong uptick.

In the coming days, traders will need to keep a close eye on various key resistance and support levels. The belief is that any breach of the $0.30 barrier may signal an attempt by Dogecoin to test even higher price levels in the next bull run. As with any other cryptocurrency, however, one must consider risk management and have strategic trading in light of changes in the markets.