Dogecoin (DOGE) Price Enters New Bullish Phase After Months of Decline

A prominent crypto analyst is predicting that Dogecoin’s price could continue climbing in the coming days, potentially cross the quarter-dollar mark very soon.

This bullish view is supported by a confirmed trend reversal on the daily candlestick timeframe chart.

Trader Tardigrade Predicts Dogecoin Price Could Hit $0.25 Soon

Dogecoin’s price recently broke above a descending trendline that had defined its downtrend for several weeks. This breakout occurred on April 22, when Dogecoin closed above $0.165 on the daily candlestick timeframe.

This breakout was the first step indicating the coin was escaping its bearish trajectory. Shortly after breaching the downward sloping resistance line, Dogecoin’s price pulled back between April 23 and April 24 to retest the same trendline, but this time from above.

Importantly, the former resistance trendline held strong as a new support level during the retest. Following that successful test, Dogecoin resumed its upward climb, marking the continuation of the new uptrend.

This pattern of breakout, retest, continuation is a classic technical confirmation of a trend reversal. The successful retest of this trendline gives more confidence that the bullish shift is real and not a false signal.

Image From X: Trader Tardigrade

This analysis is further supported by the fact that the daily timeframe trend had previously flipped from down to up with the March higher high and higher low price action.

The last point of contact with the Fibonacci retracement on the daily timeframe also offers support to this count.

The combination of these technical signals suggests that the current short-term downtrend for Dogecoin has come to an end, paving the way for a new uptrend to emerge.

This analysis is in contrast to the view of another analyst who predicts that Dogecoin is forming a head and shoulders top on the weekly chart, which usually signals an impending downturn.

However, Trader Tardigrade’s analysis suggests that the focus is now on how far this new uptrend could carry Dogecoin. According to his analysis, Dogecoin could continue climbing in the coming days, potentially cross the quarter-dollar mark very soon.

As indicated on the chart he shared, the next Dogecoin price target is around $0.25 by the first week of May.

If achieved, a rise to $0.25 would be a significant milestone, considering Dogecoin has been stuck in a downtrend for over 10 weeks. As such, a break to $0.25 would mark Dogecoin’s highest price since late February and a robust recovery from its recent lows around the $0.14 to $0.15 range. Such a move would also represent roughly a 51% gain from the breakout level of $0.165.

However, $0.25 is only the target in the short term. In a separate analysis, Trader Tardigrade pointed to Dogecoin’s long-term chart, highlighting a round bottom formation. The accompanying chart shows that in previous cycles, Dogecoin’s price formed a rounded bottom before entering explosive upward trends. This repeated pattern, now visible again on the monthly timeframe, signals that Dogecoin may be on the verge of another significant breakout. The long-term price target in this case is $2.8.

Image From X: Trader Tardigrade

This analysis provides valuable insights into the technical factors influencing Dogecoin’s price movements and offers interesting predictions for the meme cryptocurrency’s future trajectory. It will be interesting to observe whether Dogecoin manages to reach the predicted price targets and how this analysis unfolds in the coming days.

At the time of writing, Dogecoin is trading at $0.18.