Dogecoin has once again experienced a significant price crash, following a month of upward momentum in April. This recent downturn has influenced investor sentiment, pushing many back into a state of fear. Yet, this may only represent a minor hiccup in the grand scheme of things, as indications suggest that Dogecoin’s price could very well be poised for a rebound. Notably, one crypto analyst has suggested that the decline may have marked a bottom for the cryptocurrency.
Dogecoin Price Might Have Bottomed After Crash
Crypto analyst Astronomer has indicated a potential bottom for Dogecoin’s price after the currency was rejected at the $0.18 mark. According to the analyst, the last time such fundamentals were observed was back in October 2024, where Dogecoin saw a remarkable rally of approximately 500%, reaching a local peak of $0.50.
This time around, the analyst believes that current market indicators mirror those from 2024, implying that the altcoin sector could be nearing its bottoming phase. Moreover, Astronomer predicts that Dogecoin’s price may rally even higher than it did in the previous cycle.
At this crucial juncture, expectations are that Dogecoin could reverse its trend and provide significant rewards for investors. As Astronomer noted, “Given this is an altcoin and expectations likely exceed $0.50, accumulating substantial holdings carries relatively low risk. If one seeks a defined risk for a defined reward, initiating a long position makes sense.”
Reversal Pattern In The Works
The price of Dogecoin seems to be forming a reversal pattern after potentially setting a bottom. This observation has been echoed by another crypto analyst who has identified a bullish divergence on Dogecoin’s chart. The Relative Strength Index (RSI) indicates bullish sentiment, and the analyst believes that a breach above the $0.206 level would be positive for Dogecoin’s price trajectory.
As bullish sentiment resurfaces, it may provide Dogecoin with the necessary momentum to advance. Furthermore, if Dogecoin is able to close above the trend line illustrated in the chart below, it is anticipated that the price will turn decisively bullish.
The immediate target for Dogecoin’s price action is the resistance level at $0.20, which bulls must overcome. If successful, the $0.27 mark will come into play, with a final target indicating a potential 100% increase lying above the $0.33 threshold.
