- Dogecoin remains above key support, signaling potential upward trend.
- Analysts suggest DOGE could see a 120% rise in the upcoming bull cycle.
- Over 82% of traders on Binance expect DOGE to rebound soon.
After a 16% drop in price, Dogecoin may be on the brink of a recovery. Analysts believe the meme coin is positioning itself for a breakout, with some predicting a 120% rise in 2025. Read on to discover why DOGE might be ready for a comeback.
Dogecoin (DOGE) Traders remain optimistic amid price dip
Dogecoin has declined 16% over the past month, but some analysts believe the cryptocurrency will reach $1 in 2025. DOGE may be in a phase of recovery despite recent price declines. Technical analysis suggests a potential upward trend may occur after a bottoming phase.
Traders like “Trader Tardigrade” have pointed out a possible “Selling Climax Bottom” pattern for Dogecoin. This pattern indicates that a surge in price may come after a period of heavy sell-off. The cryptocurrency remains above its support trendline, indicating that the market could be ready for a rebound.
According to the analysis, Dogecoin is currently positioned for a significant surge. If the support trendline holds, a “Sign of Strength” (SOS) could appear, indicating an upward momentum. This technical pattern suggests that the meme coin will soon recover, indicating a strong market reaction to recent decline.
Another trader, JAVON, has emphasized the potential for Dogecoin(DOGE)to enter a massive bull cycle. He mentioned past cycles where the coin experienced a sharp rise after it broke the resistance level. According to Javon, DOGE could see a 120% increase to reach new all-time highs.
JAVON pointed out that DOGE is entering 2025 with favorable conditions for a price surge. He noted that previous bull cycles showed a recurring pattern, where the coin surged after consolidating at key price levels. Thus, the pattern indicates that DOGE could be near another breakout.
The technical outlook suggests that Dogecoin’s price could follow a similar trajectory to previous bull cycles. A surge of over 120% could push the cryptocurrency to new levels to surpass its current price.
However, some analysts like Kevin expressed caution, warning that if Bitcoin does not recover, Dogecoin may decline further. According to Kevin, DOGE may drop lower before reaching a bottom support level.
Derivatives traders appear more optimistic, as the majority of traders on Binance anticipate a DOGE rebound. Over 82% of traders have positioned themselves long and bet on an imminent price increase. This indicates confidence in a possible recovery despite the current price drop.
Blockchain analytics firm IntoTheBlock also provided a “Mostly Bullish” signal for Dogecoin. This contrasted with Ethereum, which received a “Mostly Bearish” signal. These signals further indicate the uncertainty and volatility in the market.
At the time of writing, Dogecoin (DOGE) was trading at $0.334, reflecting a 2.87% drop in the last 24 hours. However, DOGE has gained 0.55% year-to-date which shows an increase compared to 2024. These fluctuations highlight the high risk-reward ratio for trading DOGE in the current market conditions.