Dogecoin (DOGE) Price Prediction: Breakout Sets the Stage For Dogecoin To $0.4

The broader crypto market has taken a hit. Major digital assets like Dogecoin are faced notable bearish movements with the dog-themed meme coin dropping to the $0.21 level.

Major digital asset Dogecoin (CRYPTO: DOGE) has been faced notable bearish movements faced. The dog-themed meme coin dropped to the $0.21 level.

Dogecoin may be faced with renewed bearish pressure, but one crypto analyst is still preparing for a large rally for the meme coin as bullish momentum gradually returns to the market, pushing prices back to $0.22.

What Happened: Dogecoin appears to have found renewed upward momentum due to the general market recovery following Bitcoin’s (CRYPTO: BTC) brief upswing today.

With recent developments spotted on the Dogecoin 1-day chart, the meme coin is once again flashing signs of strength as it eyes a key breakout.

X (formerly Twitter) crypto expert and investor Trader Tardigrade points to a formation that might be setting up for DOGE to rally. As Dogecoin trades at critical support zones, the expert predicts a strong move to $0.4.

According to the crypto analyst, the meme coin is forming a leg in consolidation below the $0.25 (yellow) resistance level after recent pullbacks.

This marks the second leg in consolidation in less than a week. To elaborate further, the first leg of consolidation took place last Tuesday as Dogecoin failed to breakout above the immediate resistance at $0.25.

The crypto expert believes that Dogecoin is likely to breakout of this level following a shakeout below $0.21 (green) to remove weak hands. However, Trader Tardigrade noted that DOGE would hit the resistance zone several times.

When a breakout finally occurs, Dogecoin is expected to rally to $0.4, which was last seen in late January due to its previous explosive run.

This level is another crucial resistance range for DOGE in its bullish journey. Last time the meme coin reached this key barrier, it caused a major pullback in the following months before DOGE gained traction again in April.

In the event that Dogecoin revisits and breaks past the $0.4 zone, it may lead to an extension of the rally as buying pressure grows.

Technical Indicator Shows Hidden Bullish Divergence: With technical indicators aligning and market sentiment turning cautiously bullish, DOGE might be gearing up for its next major uptrend.

Trader Tardigrade also identified an RSI (Relative Strength Index) Hidden Bullish Divergence on the 1-day chart.

The emergence of a hidden bullish divergence on the DOGE RSI reflects growing momentum for a bounce even as prices continue to fluctuate. Presentl, the expert highlighted that the meme coin is forming a higher low, while the RSI is forming a lower low.

Another crypto analyst, Ali Martinez, has underlined a critical resistance at $0.26 as Dogecoin prepares for another upswing.

According to the analyst, this level continues to be the most important resistance wall for DOGE. Breaking this level could mark the beginning of a bullish phase.