Dogecoin has extended its decline below $0.17 in the past 24 hours but is now flashing one of the most bullish signals in years. According to a recent technical analysis published on the TradingView platform, Dogecoin appears to be bouncing off the lower trendline of a multi-year descending triangle that could push it toward and above its 2021 all-time high.
Breakout Confirmed Above Key Technical Zones
The analysis, which is based on the Dogecoin / Tether US pair on Binance, examines the meme coin’s price action on the weekly candlestick timeframe chart. According to the chart below, Dogecoin has been locked in a downtrend since it posted a multi-year high of $0.48 in December 2024. This downward movement has remained consistent for the past 17 weeks, forming a series of lower highs and lower lows. Although there were brief periods of recovery, most notably one or two green weekly candles, they were ultimately overpowered by the prevailing downtrend.
Recent price action in early March saw the meme coin break below support levels and essentially wipe out most of its earlier price gains in Q4 2024. This downtrend slowed towards the end of the month, leading to the formation of some indecision candles that suggest a reversal might be coming soon. Interestingly, this slowdown movement has caused the Dogecoin price to start exhibiting what might be a reversal from the lower trendline of a descending triangle that has been in formation since 2023.
This bounce is further intensified by the powerful move above the Ichimoku Cloud, which is a good indicator of resistance and trend direction. This breakout is viewed as confirmation that Dogecoin is gradually shifting out of a prolonged bearish phase.
$1 Target By Mid-2025, But Pullback To $0.4 Possible
A potential rebound is taking shape as the analyst outlined a scenario where DOGE extends its climb through an uptrend channel embedded within a larger triangle formation. If unhindered, this upward move will see the meme coin break above its current all-time high of $0.73 and finally break the $1 price level by mid-2025.Â
Although there is more upside potential after breaking $1, the analyst suggested that Dogecoin might go through a pullback towards $0.43 from here, which will serve as a strong support zone and retest point following the breakout. If this level holds, Dogecoin could resume its upward climb toward $1 again and ultimately reach $2.
These price targets look good in a long-term timeframe, but it depends on how DOGE performs in the short term. At the time of writing, Dogecoin is trading at $0.1659, down by 1.48% in the past 24 hours. Any bullish outlook here will depend on whether the meme coin can hold above $0.17 and push above $0.2 before the end of the month. However, a break below $0.15 could destabilize any bullish momentum.
Featured image from Adobe Stock, chart from Tradingview.com
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