Dogecoin (DOGE) Price Has Just Entered a Critical Order Block Zone

According to a crypto analyst, the Dogecoin price has just entered a critical Order Block zone, an area that could serve as a launchpad for a major price rally.

Crypto trader Trader Tardigrade has noted a key change in the Dogecoin price action that could see the meme coin rally to a $0.8 ATH target.

In a recent X post, the trader suggests that once these order blocks are filled, Dogecoin could break out and push toward a new All-Time High (ATH). An "Order Block" is a price level where institutional traders have placed large limit orders. These zones can act as strong support or resistance areas, influencing a cryptocurrency's price action by either serving as a barrier for further price breakdown or a threshold for a market rally.

According to Trader Tardigrade's analysis, Dogecoin has entered a critical Order Block zone at $0.22. Historical data shows that the meme coin has previously surged after retesting similar Order Blocks. The analyst's chart highlights two past instances where the DOGE price dropped to a support zone before experiencing explosive rallies.

Specifically, in December 2024, when the demand for meme coins was high, Dogecoin entered an Order Block zone around the $0.1 level. After a period of slight price increases and consolidation, the meme coin experienced a massive price rally that pushed its price to new highs around $0.44.

Considering that Dogecoin has entered a similar Order Block zone, Trader Tardigrade suggests that if this pattern holds, the meme coin could soon see a significant breakout to $0.8, marking a new ATH.

Despite the recent volatility that has plagued the market and ongoing price instability, analysts remain optimistic about the future Dogecoin price outlook, especially with the recent formation of a Double bottom pattern. Typically known to be a bullish indicator, the Double bottom indicates the potential end of a downtrend and reversal to an uptrend.

According to a new X post by Trader Tardigrade, Dogecoin's newly formed Double Bottom could trigger a surge back to its previous high around the $0.22 level. This price increase will signal a massive lift from previous bearish trends, which have led to doublt-digit price crashes for Dogecoin.

Currently, DOGE is trading at $0.18, experiencing a crash of over 43% and eliminating half of its value. A successful execution of the Double Bottom pattern will help the meme coin initiate a recovery, potentially resuming its previous uptrend. Moreover, Dogecoin's Relative Strength Index (RSI) indicates an imminent breakout from the horizontal blue line on the chart, indicating increasing momentum.