Dogecoin shows signs of recovery after a period of selling pressure and market uncertainty. It has broken through the $0.1750 resistance level, raising questions about future market growth.
Breakout of Downward Channel and Retest
On the hourly chart, Dogecoin price broke out of a defined descending channel, marking the end of a short-term bearish trend. The breakout occurred near $0.1720, marked by heavy intraday resistance. Following this, the Dogecoin price rallied past the $0.1750 level and is currently consolidating just above this zone. Analysts highlight key support levels at $0.1685 and $0.1650, as well as potential resistance levels at $0.1780, $0.1850, and the psychological level of $0.20.
Long-Term Signs of Bottom Formation
Long-term analysts point to the emergence of structural bottom signals for Dogecoin price. CEO of Investments stated that the DOGE/USDT weekly chart showed a clear higher low. Additionally, a bullish structure may push the price to $1.16 in the next growth phase. Other analysts, like Astronomer, highlight that Dogecoin price might have bottomed, establishing support around $0.165, comparing the current setup to past growth phases.
Whale Activity and Market Metrics
Recent data indicates significant activity among large Dogecoin holders. One notable transaction was the movement of 100 million DOGE to a private wallet, suggesting long-term bullish positioning. Meanwhile, while retail investor activity remains low, larger wallets have resumed their purchases since April 8. A divergence between market capitalization and realized value indicates that recent price increases may be supported by speculative trades rather than strong fundamentals.
This analysis indicates that Dogecoin price may continue to rise in the coming weeks, particularly if key resistance levels are surpassed. Whale activity and the formation of technical support levels provide optimistic grounds for further price dynamics.
