Dogecoin, the popular meme cryptocurrency, has recently experienced a significant price decline along with the broader crypto market. However, technical analysis from crypto analyst Trader Tardigrade suggests that Dogecoin may have already established its cycle bottom, setting the stage for the next potential price surge.
Last week, the cryptocurrency market faced a sharp downturn, with Dogecoin experiencing a nearly 40% drop before finding support around $0.22. This marked the lowest price level for Dogecoin since the beginning of 2025 and the last time it traded at this level was in early November 2024.
Despite the severity of the drop, Trader Tardigrade’s analysis highlights that the $0.22 level is part of a key trendline that played a crucial role in Dogecoin’s price movements throughout 2024. With the price now bouncing off this level, the analyst notes that the trendline has seemingly flipped into a strong support zone.
Dogecoin has already shown signs of recovery, rebounding to $0.2561, reflecting a 16% increase from its recent low. On-chain data from IntoTheBlock also indicates that buyers stepped in around this support level. However, the ability of Dogecoin to hold above this level in the coming weeks will be a key determinant of whether the cryptocurrency has truly reached a bottom for the rest of this cycle.
Trader Tardigrade’s analysis also highlights a recurring pattern in Dogecoin’s price behavior. Historically, Dogecoin has experienced significant pullbacks of more than 50% after strong multi-month rallies. However, these pullbacks have always been followed by another strong rebound, eventually leading Dogecoin to reach new peaks.
The analyst notes three major pullbacks in Dogecoin’s history: a 59.76% decline, a 56.2% drop, and the most recent pullback of 58.25%. Based on this historical behavior, Tardigrade suggests that the recent correction might be accompanied by another strong rebound.
In fact, the last time such a rebound occurred, Dogecoin went on a remarkable 23,000% increase to reach its current all-time high of $0.73. From the current levels, Trader Tardigrade predicts a similar trajectory, with a price target of $2 for Dogecoin.
The $2 price target has been a recurring prediction among crypto analysts for Dogecoin. Crypto analyst Dima Potts has also predicted that Dogecoin is poised to target all-time highs between $1.50 and $2.10. For now, a key milestone for a bullish Dogecoin would be to break above the $0.3 level.
If Dogecoin can maintain its position above the key support level and continue its recovery, it could signal a potential trend reversal and the beginning of a new upward cycle. Investors and traders will be closely monitoring Dogecoin’s price action in the coming weeks to see if the meme cryptocurrency can live up to the bullish predictions.
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Tags: Dogecoin, DOGE, technical analysis, crypto market, price prediction, cycle bottom, support level