In the last 24 hours, Dogecoin has nosedived more than 20% amid a broader decline in the cryptocurrency market. However, notable analysts suggest not to lose hope just yet, as the price remains above the so-called ‘Bull Market Line.’
Should the market recover, Dogecoin may once again experience an upward trend!
Analyst Suggests ‘Bull Market Line’ Could Foster a Comeback
According to a report from NewsBTC, cryptocurrency analyst Kevin Capital (@Kev_Capital_TA) reveals that while Dogecoin is experiencing significant drops, it is still positioned above a critical support level termed the Bull Market Line. This may enable the coin to regain buying momentum if the ‘overall market’ begins to recover.
“The situation surrounding Dogecoin has not changed significantly since my last post on March 22, 2025,” said Kevin Capital. “Long-term indicators have largely reset themselves, and we are still standing on the support of the Bull Market Line. While my views may differ from the majority on X, we do not exploit the fears of others. As long as Bitcoin remains favorable and economic data continues to be positive, I believe Dogecoin has the potential to rise again in the coming weeks,” he added.
Kevin referenced an earlier post from March 22, 2025, where he conducted a detailed technical analysis of Dogecoin. In that post, he indicated that the price level of $0.139 represents the “ultimate support for a bull market” and warned that if the weekly close slips below a long-standing downward resistance level, it could signal a severe shift in sentiment.
Dogecoin vs. Overall Market Liquidity
Kevin analyzed the macroeconomic context by comparing global liquidity indices with Dogecoin’s price chart.
He stated, “Looking at #Dogecoin alongside the global liquidity index reveals that we are at a very interesting point. The logarithmic chart of Dogecoin is currently testing a point that has been a resistance area throughout the entire bear market from May 2021 until October 2024.”
Referencing these bear market phases underscores Dogecoin’s price movements between the peaks of 2021 and the subsequent declines. He further explained that this zone coincides with the “macro .382” point at a price of $0.142, measured from the peak of the bull market to the bottom of the bear market. He sees this as a critical turning point and potentially the onset of a price recovery if the overall market shows signs of improvement.
Kevin also noted that the price direction of many cryptocurrencies is intertwined with overall market liquidity. If the global financial markets start to slow down or, at the very least, if the Fed pauses interest rate hikes, liquidity could return.
In his view, a gradual easing (slowing of interest rate hikes) could be a factor contributing to a recovery in both market liquidity and Dogecoin prices. “Historically, I believe we are likely to break out here. If historical patterns repeat, investing in Dogecoin at this point presents an excellent risk-to-reward ratio for both long-term holding and short-term trading due to the potential for substantial profits compared to the risks involved,” he said, clarifying that if Dogecoin fails to hold above $0.139 and cannot sustainably recover, that would be the point at which he would reconsider this price outlook.
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