TLDR
- Dogecoin recently rebounded by 5.38% after hitting a key support level at $0.142
- Technical analysts suggest a possible rally toward $3 based on bullish RSI crossover patterns
- DOGE network growth shows doubling of new addresses (16,400 to 34,600) over the past month
- Price has fallen 70% from its cycle high of $0.479 in November 2024
- Short-term breakout from a descending wedge pattern could trigger a relief rally before continuing downward
Dogecoin (DOGE) has shown signs of recovery after a prolonged downtrend, bouncing from a critical support level at $0.142 on March 11. The meme coin has gained 5.38% following this bounce, showing renewed bullish momentum after months of decline.
The recent price movement comes after DOGE experienced a 70% drop from its cycle high of $0.479 reached in November 2024. This steep correction has brought the cryptocurrency to test key technical levels that analysts are now watching closely.
Crypto analyst Ali Martinez has highlighted a significant price channel that DOGE is currently trading within. According to Martinez, the token is holding at a crucial support level that could determine its next major move in the market.
“If this support holds, we might see a rebound toward the mid or upper boundary of the channel,” Martinez noted. This potential rebound could target the $3 level or higher if historical patterns repeat.
The stock Relative Strength Index (RSI) is showing a promising setup on the weekly chart. Previous instances of bullish RSI crossovers in October 2023 and February 2024 led to price increases of 88% and 187% respectively.
With another bullish crossover currently forming on the weekly stock RSI, some analysts believe DOGE could be preparing for a similar upward move. This technical indicator has historically preceded major price rallies for the cryptocurrency.
Network growth metrics are adding to the bullish case. The Dogecoin network has seen rapid expansion over the past month, with new addresses doubling from 16,400 to 34,600. This growth indicates rising adoption and interest in the DOGE ecosystem.
Increased network activity often precedes price movements as more users enter the market. The doubling of new addresses suggests that despite the recent price decline, actual usage of Dogecoin continues to grow.
Trading in a bullish pattern
On the daily timeframe, DOGE is currently trading inside a descending wedge pattern. This formation is typically considered bullish in technical analysis and could signal an upcoming breakout to the upside.
If Dogecoin breaks out from this pattern, the next resistance level would be around $0.275. This price target represents both a horizontal resistance level and the 0.382 Fibonacci retracement level of the recent downward move.
Technical indicators on the daily chart support the breakout thesis. Both the RSI and Moving Average Convergence Divergence (MACD) have generated bullish divergences, increasing the likelihood of a breakout from the wedge formation.
Despite these short-term bullish signals, the longer-term outlook remains more cautious. The weekly timeframe shows that DOGE recently broke down from the $0.215 horizontal support area, which had previously acted as resistance in March 2024 before becoming support in December 2025.
This breakdown suggests that Dogecoin’s overall upward movement may have ended. If the decline continues after any short-term relief rally, the next major support level to watch would be at $0.110.
Crypto trader Tardigrade has identified a recurring pattern in Dogecoin price action that could signal an upcoming bull run. According to Tardigrade, DOGE typically forms an initial low as the RSI enters oversold territory, followed by a second lower low with similar RSI readings.
The current setup suggests a bullish move
If this historical pattern holds true, DOGE could be preparing for a significant bullish move. The current setup resembles previous formations that preceded major rallies in the token’s price history.
DOGE futures open interest has surged more than 4% to $1.40 billion, with 24-hour liquidations exceeding $7.24 million. Increased futures activity often indicates growing trader interest and can fuel price volatility.
Asset managers like Bitwise are pursuing a Dogecoin ETF, which could bring additional attention and capital to the meme coin if approved. Institutional involvement through ETFs has previously driven price increases in other cryptocurrencies.
The wave count analysis suggests that the current movement inside the descending channel could be a five-wave decrease, possibly forming wave A of a larger correction. The proposed breakout would likely represent wave B in an A-B-C structure, after which another decline may follow.
For a true bullish reversal to be confirmed, Dogecoin would need to achieve a weekly close above the $0.215 level. Until this occurs, the short-term rally might be better characterized as a relief bounce within a larger bearish trend.
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