Dogecoin (DOGE) is bouncing back after a turbulent week, with analysts predicting a potential surge toward $0.40 as critical support levels hold firm.
The popular meme-inspired cryptocurrency recently tested key support around $0.20, which successfully absorbed selling pressure. Market watchers note that this consolidation, combined with strong on-chain activity and renewed retail interest, could set the stage for a broader rally in the coming weeks.
Technical Structure and Support Levels
Dogecoin recently tested its major support around $0.20, which held firm despite a brief dip during a broader market sell-off. According to crypto analyst EtherNasyonaL, the DOGE/USD monthly chart suggests a constructive trend is forming after years of being capped under a descending resistance line dating back to 2021.
Dogecoin (DOGE) remains technically bullish, with recent retests of key downtrend and resistance levels suggesting a potential major price move ahead. Source: EᴛʜᴇʀNᴀꜱʏᴏɴᴀL via X
“After breaking out from a long-term resistance, DOGE pulled back to $0.15–$0.16 and found buyers defending that zone. This indicates strong foundational support for the token,” said EtherNasyonaL.
Currently, DOGE is trading around $0.20–$0.21. Key resistance levels lie at $0.28–$0.30, while a successful push above these barriers could open the door for higher targets, potentially reaching $0.40 or beyond.
On-Chain Metrics Point to Accumulation
On-chain data reinforces the bullish outlook. Short-term holders have been actively buying the dip, with the MVRV Z-Score and Reserve Risk Indicator showing DOGE in an undervalued zone. Historically, such levels have preceded major bull runs in 2017 and 2021.
Dogecoin (DOGE) remains bullish on the 3-day chart, with recent retests of key downtrend and cup-and-handle resistance levels suggesting a potential upward move ahead. Source: Trader Tardigrade via X
Traders are also watching whale activity closely. Approximately $42 million worth of DOGE was accumulated during recent dips, signaling confidence among large holders. Analyst @TATrader_Alan commented on social media:
“DOGE is fine. The 3-day chart shows breakout signals above $0.18 support, suggesting continued upward momentum.”
Market Drivers: Nasdaq Listing and ETFs
Beyond technical factors, corporate and regulatory developments could further support Dogecoin’s price. The House of Doge, linked to the Dogecoin Foundation, plans a Nasdaq listing via a $50 million merger, bringing the cryptocurrency closer to mainstream finance.
At the same time, several Dogecoin ETFs from issuers like 21Shares, Bitwise, and Grayscale are under SEC review. If approved, these funds could channel new institutional money into DOGE, historically boosting liquidity and price discovery.
Short-Term Outlook
Despite recent volatility, Dogecoin’s short-term support at $0.20 is solid. Analysts note that a close above $0.25 on the daily chart could trigger a push towards $0.29–$0.30. A breakout that sustains above this area could potentially drive DOGE to challenge $0.40, in line with bullish patterns observed in previous accumulation stages.
Dogecoin (DOGE) rebounds from key supports, clearing leverage and eyeing a potential rally toward $0.40. Source: MMBTtrader on TradingView
The recent shakeout eliminated leveraged traders from the market, clearing the way for a healthier upward trend.
Retail demand for Dogecoin is strong, driven by social media madness and sentiment. Combined with mature crypto markets and increasing on-chain activity, the situation is bullish for a potential rally.
Final Thoughts
Dogecoin’s sound technical setup, strong on-chain fundamentals, and upcoming corporate announcements suggest the cryptocurrency is embarking on a potentially bullish cycle. The recent consolidation above $0.20 and whale accumulation suggest the market has absorbed short-term bearish pressure, setting a better foundation for momentum higher.
Dogecoin was trading at around $0.20, down 5.38% in the last 24 hours at press time. Source: Brave New Coin
Although investors are advised to exercise caution amid ongoing market volatility, th configuration provided here suggests that DOGE could test the $0.40 mark in the near term if key support holds. Ongoing retail demand, ETF developments, and potential Nasdaq-related news can also propel the coin’s action, sustaining bullish sentiment among the trader community and analysts.
