Dogecoin (DOGE) is showing promising signs of recovery after establishing crucial support at $0.155, setting the stage for a potential rally to $0.17. Technical analysis from crypto trader BitGuru suggests the popular meme coin may be preparing for its next significant move after weathering recent market volatility.
Technical Analysis Shows Strong Support Formation
The latest price action on Dogecoin’s 4-hour chart reveals a compelling technical setup. After experiencing a downtrend from $0.22 in early March 2025, DOGE has found stability in a critical support zone. Similar to previous recovery patterns, the current price structure suggests a potential bullish reversal is forming.
Key Price Levels to Watch
Several critical price levels are currently in play:
- Support: $0.155 – Currently acting as a strong foundation
- Immediate Resistance: $0.17 – Next major target for bulls
- Secondary Resistance: $0.18-$0.20 – Potential range for extended movement
Market Sentiment and Trading Volume
Trading volume patterns indicate growing interest at current levels, with buyers showing renewed confidence after the recent pullback. The rounded retracement curve formation suggests accumulation is taking place, typically a precursor to upward price movement.
Risk Factors and Bearish Scenario
While the current setup appears bullish, traders should remain aware of potential risks:
- A break below $0.155 could trigger a decline to $0.13
- Worst-case scenario could see prices retreat to $0.11
- Overall market sentiment could impact recovery potential
Frequently Asked Questions
What is the next major resistance level for Dogecoin?
The immediate resistance level is at $0.17, followed by the $0.18-$0.20 range.
How long might this recovery take?
Based on current market conditions and trading patterns, a move to $0.17 could materialize within the next few weeks if support holds.
What could invalidate this bullish scenario?
A decisive break below the $0.155 support level would likely invalidate the bullish outlook and could trigger further selling pressure.