With Bullish Sentiment Returning, Dogecoin (DOGE) Has Briefly Recovered From Recent Bearish Pressure

With bullish sentiment gradually returning to the broader crypto market, Dogecoin, the largest dog-themed meme coin, has recovered briefly from recent bearish pressure.

Bullish sentiment has been returning gradually to the broader crypto market, and recently, the largest dog-themed meme coin, Dogecoin (CRYPTO: DOGE), has recovered briefly from recent bearish pressure.

As the meme coin’s upside momentum builds, many crypto analysts are predicting a potential rally for Dogecoin, which indicates that the bearish performance will soon come to an end.

Two Levels Standing In The Way Of Dogecoin’s Rally

Dogecoin is showing multiple signs of upward movement supported by steady bullish sentiment in the crypto market. Delving into Dogecoin’s recent price action, Ali Martinez, a seasoned crypto expert and trader, has revealed a key moment that could change DOGE’s price dynamics in the upcoming days.

Martinez’s analysis shows that Dogecoin is eyeing a potential uptrend, but it will need to overcome two crucial resistance levels before it can rally. These levels could act as a launchpad for the meme coin’s price recovery after facing a prolonged consolidation phase.

According to the expert, DOGE has encountered two key resistance walls at the $0.18 and $0.21 price marks. At these points, a significant supply of DOGE was bought, reflecting the importance of the levels. With momentum building, breaking past these levels might be the launchpad for the next big bull rally for the dog-themed meme coin, setting it on a course for higher price targets in the short term.

The expert cited these two key resistance walls after examining the DOGE UTXO Realized Price Distribution (URPD), a key metric that determines the amount of supply purchased at different levels. Looking at the chart, Dogecoin’s largest supply was acquired in the $0.07 range, in which investors bought more than 20% of the meme coin.

Moreover, the second and third-largest supply walls are located at $0.17 and $0.20, respectively. During these levels, investors purchased about 7.97% and 7.04% of the DOGE supply, respectively. Since the meme coin is trading below these two zones, it implies that all of the coins acquired at the levels are at a loss.

However, all of this could change as DOGE gears up for a persistent upswing. Crypto analyst and investor Trader Tardigrade has predicted a potential move toward the upside. His forecast is based on Dogecoin’s recent breakout from a descending trendline, which signals an uptrend continuation.

"After a year of sideways movement in a large pennant, #Dogecoin finally broke out of the descending trendline and closed above it on the weekly timeframe. This technical breakout is setting the stage for a potential uptrend continuation."

— Trader Tardigrade (Ali) (BTC) (@TraderTardigrade) August 16, 2023

DOGE’s Next Major Move In Sight?

In another X post, Trader Tardigrade also highlighted a promising development for DOGE’s price that hints at a significant rally. Specifically, the expert revealed that the meme coin has formed a crucial J-shaped pattern in the monthly time frame chart.

The last time this pattern emerged in the 2017 bull market cycle after substantial accumulation, Dogecoin saw huge upswings to new highs. Meanwhile, after reaching its all-time high in 2021, a huge accumulation has occurred, and prices have retraced, leading to the current J-shaped pattern. As a result, the expert believes that a significant rebound is imminent as he anticipates a similar rally to a new all-time high of $5.