As the momentum slowed at the beginning of this week, Dogecoin (DOGE) saw a direct drop of 5.5% on the daily chart, returning near the previous low point. If it can hold steady at this position, Dogecoin has the opportunity for a stronger rebound in the short term, or even medium term.
Dogecoin is getting ready to break through the $1 mark
On Thursday, Dogecoin fell along with the market, returning to the $0.136–$0.138 range. Since the big correction began in the fourth quarter, Dogecoin has overall been smashed down by almost 50%, and in recent weeks has been stuck bouncing around the $0.130–$0.155 range.
During this week's rebound, Dogecoin once again surged to the upper range, attempting to break through for the second time this month, but on Wednesday there was suddenly a chaotic drop, falling as much as 4.6% during the day, and then sliding down to the current price level.
Although it has been pressured in the short term, Dogecoin still remains stable above the key support area, which is likely 'laying the groundwork for a push towards 1 dollar next year'.
From the chart, Dogecoin (DOGE) is currently testing a continuously rising support level again, which has almost always been a signal before a major trend starts over the past two years. Since the end of 2023, this point has been tested three times, each time at the end of a downward phase, and the price has bounced up against this support to hit new highs, making it a 'launching pad' for the upward movement.
It is worth noting that after each test of the two-year trend line, Dogecoin's rebounds have become increasingly fierce and prolonged.
In the first wave of rebound, Dogecoin rose 87% in 8 weeks; after the second pullback, it directly surged to a 210% increase in 10 weeks; by Q3–Q4 of 2024, this wave will be even more exaggerated, surging 442% in 14 weeks, reaching a multi-year high of 0.48 dollars.
The price has once again reached above this key support level; if it can stabilize here, continuing to surge towards 1 dollar is not a pipe dream. If the bounce is strong enough, there is even a chance for a super increase of up to 610% by early 2026.
Is Dogecoin preparing to push back to the high point of September?
The MACD golden cross for Dogecoin 'is forming'. Since Wednesday, the trend has turned upward from a downward curve, which usually indicates that 'a big volatility is coming'.
This year's price has followed the same routine before hitting a new high: several breakthroughs in the second and third quarters have all been directly pulled to a new local high after the MACD golden cross. So if this pattern continues, Dogecoin may rebound back to the levels seen in October.
In the short term, Dogecoin has a chance to achieve a 60%–120% increase. In the chart, from October last year until now, the price has been following a very standard bullish reversal pattern — a descending wedge.
This recent pullback actually resembles a gentle retest within the wedge, and now it has drawn us a pretty nice 'rounded bottom'. As long as it effectively breaks through the upper yellow resistance line, there is a chance to reach 0.20 dollars (approximately +60%).
Meanwhile, Dogecoin is retesting 'the same weekly demand zone that has triggered every major rebound in the past'. As long as this area holds, it may pull out a 115% increase to touch the high point of September at 0.30 dollars.
As of now, Dogecoin's price is around 0.141 dollars, having dropped 8% in the past week.
