Dogecoin (DOGE) Shows Signs of a Potential Price Breakout After Weeks of Bearish Momentum

The digital asset is currently trading at around $0.16, down from its December 2024 peak of $0.4843. This represents a 64% drop from its three-year high.

Dogecoin (CRYPTO: DOGE) price is showing signs of a potential breakout after weeks of bearish momentum.

What Happened: The digital asset is currently trading at around $0.16, having fallen from a December 2024 peak of $0.4843. This represents a 64% drop from its three-year high.

However, several technical indicators suggest a recovery may be imminent.

Market analyst Igor Bondarenko predicts that DOGE could reach $0.29 in the short term. This prediction is based on the cryptocurrency approaching its 20-day exponential moving average (EMA), which could serve as a support level for traders entering the market.

If DOGE manages to break through the EMA and continue upwards, Bondarenko anticipates a move towards $0.23, followed by a final rally to $0.29.

But if it fails to break through this level, it could fall as low as $0.10.

"If it drops below the 20-day EMA, it could continue towards $0.14 and ultimately $0.10 if support levels break." Bondarenko said.

Another analyst, Trader Tardigrade, has identified an Ascending Triangle pattern on DOGE’s 4-hour chart. This bullish continuation pattern is formed by a horizontal resistance line and a rising support line. The emergence of this pattern suggests a possible upward breakout.

Trader Tardigrade expects a rebound to the $0.20 level, followed by a brief pullback before continuing upward.

DOGE’s latest weekly close featured a Doji Candle, which is often associated with market reversals. This pattern suggests that the ongoing downtrend may have come to an end.

According to Trader Tardigrade, the last time this pattern appeared, it preceded an upward movement.

"The weekly candle closed with a Doji, indicating a potential reversal from a downtrend to an UPTREBen at this level."

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Growing Interest Despite Price Drops:On-chain data from market intelligence platform Santiment reveals that wallet addresses holding at least 1 million DOGE have increased by 62 since February.

This represents a 1.24% growth in large holders, while active addresses have also seen a surge, reaching over 150,000 daily transactions.

This is the highest activity level since mid-November 2024, showcasing a surge in interest and activity in the digital asset.

According to on-chain analysts, such accumulation patterns are often seen before price movements in cryptocurrencies.

The broader DOGE community remains optimistic about long-term prospects, with some analysts, including DOGECAPITAL, predicting much higher price targets.

These optimistic forecasts are driven by several catalysts. For instance, BlackRock (NYSE:BLK) has filed for a DOGE ETF, showcasing growing institutional interest.

Institutional interest could drive mainstream adoption of the meme cryptocurrency, ultimately leading to higher price levels.

More conservative estimates suggest that DOGE could reach $1 between 2025 and 2027. This would require a 488% increase from current levels.

For higher targets like $5, analysts project a timeline between 2029 and 2035. This would represent a 2,841% rise from today’s price.

The $10 mark is considered a “long shot” by most analysts. If achieved, it would likely take until 2035 or beyond and would require a 5,782% increase.

Such ambitious targets would require substantial upgrades to Dogecoin’s utility and adoption as a global payment system. The cryptocurrency would need to move beyond its meme status and find real-world use cases to sustain such significant price rallies.

Despite the current bearish market, Dogecoin has gained over 6% in the past week. This modest recovery offers a glimmer of hope to investors who have seen the cryptocurrency struggle in recent months.

As the markets await a broader crypto recovery, Dogecoin’s performance in the coming weeks will be closely watched. Technical patterns and on-chain metrics suggest the potential for a short-term rally, but the cryptocurrency faces several challenges that could impact its recovery trajectory.