Dogecoin DOGE/USD is back above the 20 cents market, sparking renewed optimism among traders.
What Happened: In an update in his exclusive Patreon group, prominent analyst Kevin pointed out that DOGE rebounded from $0.189, a confluence of the 0.5 Fibonacci level and the weekly bull market support band.
He says that to confirm a short-term recovery, DOGE needs to reclaim the $0.22 level, which would place it above both the 4-hour and daily 200 SMA/EMA. Momentum indicators are turning bullish, suggesting a potential higher low forming on the higher time frames.
However, Kevin also cautions that Dogecoin’s fate is tied to Bitcoin BTC/USD holding current levels and breaking above the $120,000-$123,000 zone to invalidate the ongoing weekly bearish divergence.
Trader Cantonese Cat said he has increased his DOGE holdings, citing a favorable risk-reward setup. He expects a bull market support band backtest along with a breakout and retest of a long-term bear market trendline, reinforcing his bullish stance.
Also Read: Dogecoin Drops 15% In 1 Week: Why Do Whales Keep Buying The Dip?
What’s Next: XForceGlobal remains optimistic, noting that DOGE is one of the few altcoins with a realistic shot at surpassing its previous all-time high in this cycle. He’s focusing only on assets with strong return potential, and DOGE remains high on his list.
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Trader Tardigrade draws parallels between DOGE’s current pattern and a historical bullish setup.
In the previous cycle, a 65% drop was followed by a triple bottom and a strong rally.
Currently, DOGE has already retraced 73%, formed two clear bottoms, and is now developing a third.
If this pattern completes, it could trigger a major rally and signal a trend reversal.
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