As the upward momentum weakened earlier this week, Dogecoin (DOGE) saw a 5.5% drop on the daily chart, falling back to recent lows. Some analysts believe that if the current level can hold, Dogecoin may experience a significant short-term and mid-term rebound.
Dogecoin is preparing to reach the $1 milestone
On Thursday, Dogecoin followed the trends of other cryptocurrencies, falling to the range of $0.136 to $0.138. Since the market downturn in the fourth quarter, Dogecoin has dropped about 50% and has been fluctuating within the price range of $0.130 to $0.155 over the past few weeks.
During this week's rebound, Dogecoin briefly tested the recent range highs, attempting to break through this area for the second time this month. However, influenced by expectations of interest rate cuts from the Federal Reserve, the market experienced significant volatility on Wednesday, dropping 4.6% at one point before continuing to dip to current levels.
Market observer Trader Tardigrade emphasized the performance of this cryptocurrency, pointing out that despite the pullback, Dogecoin remains strong in the key support area, which could 'lay the foundation for a significant rise to $1 next year.'
According to the charts, Dogecoin (DOGE) is re-testing an ascending support area that has historically signaled significant price swings over the past two years. Since the end of 2023, this support level has been re-tested three times, each marking the bottom of major retracement phases and serving as a 'springboard' for new highs.
It is noteworthy that the magnitude and duration of subsequent rebounds are showing an upward trend; after each re-test of the two-year trend line, the rebound duration is longer and reaches higher levels.
In the first wave of rebounds, Dogecoin rose 87% over eight weeks. Following the re-test of this key level, Dogecoin surged over 210% in ten weeks. Finally, between the third and fourth quarters of 2024, Dogecoin rose 442% over 14 weeks, reaching a multi-year high of $0.48.
Given that the current price is testing this level again, analysts believe that if the current level can hold, there may be a wave of upward movement to $1. If the price rebounds from this area, it could initiate a rise of up to 610% by early 2026.
Is Dogecoin about to rebound to September highs?
The trader also noted that Dogecoin's MACD bullish crossover 'is happening.' He explained that the trend of the cryptocurrency shifted from a downward trend to an upward trend starting Wednesday, indicating that significant price volatility is expected next.
He previously confirmed that several breakthroughs this year exhibited similar patterns; in the second and third quarters, each time the MACD showed a bullish crossover, the price surged to new local highs. As this pattern gradually unfolds, analysts' charts indicate that the price could rebound to levels seen in October.
Similarly, other market observers have also hinted that Dogecoin may experience a rise of 60%-120% in the short term. Analysis firm Bitcoinsensus pointed out that Dogecoin's chart has been forming a classic bullish reversal pattern—a descending wedge—since October of last year.
Analysts stated: 'After the recent price movement, the price has been slowly retracing within this structure, and it may currently be forming a nice rounded bottom. If we can effectively break above the yellow line, we may target the $0.20 area (+60%).'
Meanwhile, AltCryptoTalk recently pointed out that Dogecoin is re-testing 'the same weekly demand area triggered by every major rally in the past.' If this area holds, it could trigger a rise of 115%, reaching the September high of $0.30.
As of the time of writing, Dogecoin is trading at $0.137, with a weekly decline of 8%.
