TLDR
- Dogecoin price crashed after a month of upward movement in April
- Analyst “Astronomer” suggests DOGE may have bottomed, similar to October 2024 before 500% rally
- Price currently facing resistance at $0.1720-$0.1740 with support at $0.1685
- Bullish divergence appearing on RSI indicator, suggesting possible reversal
- Price could target $0.27-$0.35 if it breaks above current resistance levels
Dogecoin has experienced a rollercoaster ride over the past month, with its price taking a hit after showing promising upward movement throughout April. The popular meme coin is now at a crucial juncture where analysts are divided on whether it has reached a bottom or could face further declines.
The downturn has pushed investor sentiment back into fear territory. This emotional response often accompanies price corrections in the volatile crypto market.
One crypto analyst known as Astronomer has pointed to similarities between current market conditions and those seen in October 2024. That period preceded a massive 500% rally that took DOGE to a local peak of $0.5.
Another altcoin that bottomed IMO (Early call), I'm long
Alright $DOGE only moved slightly off the low, so there still is a 6R+ trade to be scored if it were to go to the highs.
Regardless, I called the $BTC bottom early, and am willing to do the same with one of my… https://t.co/CH2icaIfnn pic.twitter.com/4XgF9AWyq9
— Astronomer (@astronomer_zero) May 4, 2025
According to Astronomer, the altcoin market appears to be bottoming out now, much as it did before that previous surge. The analyst expects the Dogecoin price could potentially rally even higher than before.
Technical Indicators Point to Possible Reversal
The chart is showing signs of a bullish divergence, particularly in the Relative Strength Index (RSI). This technical pattern often precedes price reversals and could signal an upcoming rally.
For the bullish case to gain momentum, DOGE needs to break above several key resistance levels. The immediate hurdle lies at $0.1720, where a bearish trend line has formed on the hourly chart.
Beyond that, the $0.1740-$0.1780 zone represents another significant barrier. A successful close above $0.1780 could open the path toward the $0.1850 resistance level.
The next major target for bulls would be the psychologically important $0.20 mark. Breaking this level could potentially trigger a stronger rally toward $0.27 and eventually $0.33-$0.35.
On the downside, Dogecoin has established support at $0.1685, where it recently bottomed. If this level fails to hold, further support exists at $0.1650 and $0.1600.
A drop below $0.1600 could spell trouble for DOGE holders, potentially sending the price toward $0.1550 or even $0.1450 in the near term.
The hourly MACD indicator is currently losing momentum in the bearish zone, while the RSI remains below the 50 level. These technical signals suggest that while a reversal may be forming, it hasn’t fully taken hold yet.
Recent price action shows DOGE attempted a recovery after touching the $0.1685 low. It climbed above $0.170 but faces resistance at the 23.6% Fibonacci retracement level of the recent downward move from $0.1843 to $0.1685.
For investors considering entry points, Astronomer suggests that accumulating DOGE at current levels presents “little risk” given the expectations for future price appreciation beyond $0.5.
Trading below both the $0.1750 level and the 100-hour simple moving average, DOGE needs to reclaim these levels to confirm a reversal pattern is truly in play.
The most recent price data shows Dogecoin trading near $0.1720, still working to overcome the bearish trend line resistance on short-term charts.
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