Dogecoin (DOGE) Might Be About to Undergo a Dramatic Price Reversal After Months of Struggles

After months of struggle in gathering momentum, Dogecoin (DOGE) might be about to undergo a dramatic price reversal. By Sam Carter. Updated Apr 18, 2023.

Dogecoin (CRYPTO: DOGE) might be about to undergo a dramatic price reversal after months of struggle in gathering momentum. Monitoring the movements of the meme coin, analysts believe it has hit a turning point and might thus launch a quick comeback.

The question at hand is whether Dogecoin can seize this opportunity and emerge from its decline, as key indicators are currently displaying bullish signals.

Some analysts contend that Dogecoin has already reached its lowest price point, which could potentially lead to a rebound. A prominent crypto analyst, Trader Tardigrade, has observed that DOGE has been adhering to a long-term price channel.

The overall pattern indicates that a bottom has likely formed, despite the fact that it has momentarily moved outside the channel’s boundary.

Other analysts noted that the TD Sequential indicator, which is used to predict trend reversals, has sent out a buy signal on Dogecoin’s daily chart. This indication has historically been linked to price gains, suggesting that DOGE might be about to enter an upward trend.

Crucial Levels To Keep An Eye On

Support and resistance levels will be critical in determining Dogecoin’s next moves. At the moment, the $0.16 level is showing signs that a support will emerge. Market observers believe that if the meme coin can keep a solid footing on this level, it could muster enough steam to rally toward much higher price targets.

Under ideal conditions, some predictions suggest that Dogecoin may reach $2.74. Compared to its current state, this would represent a significant price hike. However, DOGE needs to surpass a number of resistance zones, including the $0.30 and $0.50 marks, before this can happen.

Another element that is giving Dogecoin a good ounce of lift is the elevated market activity of the meme crypto. For instance, in a 24-hour span, the number of active wallets on the network jumped 270% and totaled 264,000 overall. Usually, an increase in this department indicates rising enthusiasm among consumers and investors.

Meanwhile, significant investors, referred to as "whales," have been accumulating DOGE at an accelerated rate. Whales accumulated 1.7 billion DOGE in their accounts over the past 72 hours. This level of accumulation suggests that significant stakeholders value Dogecoin at its present price.

Dogecoin Outlook

While the signs are promising, Dogecoin still faces uncertainty. Market sentiment, broader crypto trends, and potential regulatory moves—such as a Securities and Exchange Commission-approved Dogecoin ETF—could all impact its price trajectory.