Dogecoin (DOGE) price holds a crucial technical level while flashing multiple bullish reversal signals on higher timeframes.

Market watchers now speculate whether the memecoin could see an extended rally toward previous highs. By Ali Martinez. Updated Apr 2, 2024 at 1:13 a.m. PDT.

Dogecoin (DOGE) price is holding a crucial technical level and flashing multiple bullish reversal signals on higher timeframes. This has market watchers speculating on whether the memecoin could see an extended rally toward previous highs.

Dogecoin Technicals Point to Potential Rally

DOGE traded at around $0.18 on April 2, testing the lower boundary of a multi-month parallel channel. This zone also coincided with a new buy signal on the TD Sequential indicator. It flashed green on the weekly chart, hinting at a possible trend reversal.

Dogecoin price structure is mirroring its September 2024 setup, according to trader @btcbalo. He added that the 0.786 Fibonacci retracement level was a line in the sand.

From another angle, trader Cas Abbe highlighted a breakout in DOGE from a falling wedge in the 4-hour timeframe. He also noted that the RSI had entered oversold territory, often viewed as a bottoming signal.

On-Chain Resistance Levels Could Trigger Selling

Analyst Ali Martinez from Glassnode identified key resistance levels for Dogecoin price at $0.18 and $0.21. His assumptions were based on UTXO Realized Price Distribution (URPD) data. These levels held the acquisition cost of 8% and 7% of the circulating supply of DOGE, respectively.

Both levels could trigger some selling as investors looked to break even, Martinez elaborated. But breaking through both could be the catalyst for the next major bull rally, he added.

Above $0.21, there weren’t any large supply clusters. This indicated a cleaner path to the upside if the Dogecoin price could push through.

Long-Term Targets Emerge Amid Higher Lows

Dogecoin has continued to post higher lows, a bullish structure that usually precedes rallies. Trader JavonTM1 noted that a sharp upside move followed every time DOGE has done so in recent months.

He highlighted a potential target of $0.6533, over 270% from current levels. “Prices are still up nearly +129% since the breakout. With prices confirming another set of higher lows, even more upside can be coming.”

This structure also unfolded over several months, suggesting a strong underlying trend that could continue in the short term.

Short-Term Optimism Boosted on Social Media

Meanwhile, retail sentiment remains upbeat. Market analyst and trader CryptoELlTES called for a $2 Dogecoin price by the end of May.

While the forecast is certainly bold, the broader sentiment speaks to a growing anticipation. The expectation is that DOGE might be preparing for its next leg up, provided Bitcoin manages to hold its current range.

Overall, DOGE bulls must reclaim $0.21 to confirm momentum. If Bitcoin remains stable, perhaps allowing for a Union Bank common stock price rally, Dogecoin could attempt a run toward $0.25.