As the momentum slowed down earlier this week, Dogecoin (DOGE) directly fell by 5.5% in daily trading, swaying back to the previous low point. If this position can hold steady, Dogecoin has the opportunity for a stronger rebound in the short term, or even medium term.
Dogecoin is preparing to challenge the $1 mark.
On Thursday, Dogecoin dropped along with the market, returning to the range of $0.136–0.138. Since the major correction started in the fourth quarter, Dogecoin has overall been hammered down by almost 50%, and in recent weeks it has been stuck fluctuating in the range of $0.130–0.155.
During this week's rebound, Dogecoin once again surged to the upper range, trying to break through for the second time this month, but suddenly jumped around on Wednesday, falling as much as 4.6% during the session, and then sliding to the current price level.
Although it has been pressed down in the short term, Dogecoin remains steady above the key support area, and this position is likely 'laying the foundation for a push to $1 next year'.
From the chart, Dogecoin (DOGE) is currently retesting a continuously rising support level, which has almost always been a signal before major market movements over the past two years. Since the end of 2023, this point has been retested three times, each time marking the end of a downturn, and the price has bounced back with this support to reach new highs, serving as a 'stepping stone' for the rise.
It is worth noting that after each retest of the two-year trend line, Dogecoin's rebounds have become increasingly strong and prolonged.
The first wave of rebound, Dogecoin rose by 87% in 8 weeks; after the second pullback, it surged directly 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.
The price has once again reached above this key support level; if it can stabilize here, continuing to surge to $1 is not a fantasy. If the bounce is strong enough, there’s even a chance for a super rise of up to 610% in early 2026.
Is Dogecoin preparing to surge back to the September high?
The MACD golden cross for Dogecoin is 'forming'. Starting Wednesday, the trend turned from falling to rising, which usually indicates that 'big volatility is coming'.
This year, before each new high, the price has basically followed the same pattern: several breakthroughs in Q2 and Q3, all directly reaching new local highs after MACD golden crosses. So if this pattern continues, Dogecoin may rebound back to October levels.
In the short term, Dogecoin has a chance to see an increase of 60%–120%. In the chart, from October last year to now, the price has been following a very standard bullish reversal pattern - a descending wedge.
The recent drop actually resembles a gentle pullback within a wedge, and now it has drawn a pretty nice 'round bottom'. As long as the upper yellow resistance line is effectively broken, there is a chance to surge towards $0.20 (approximately +60%).
At the same time, Dogecoin is retesting 'the same weekly demand zone that has triggered every major rebound in the past.' As long as this area holds, it could once again see an increase of 115% to touch the September high of $0.30.
As of now, Dogecoin's price is around $0.141, having dropped 8% in the past week.
