Dogecoin has shown sharp declines amid a weak broader market, dropping to $0.08 after being rejected at $0.15. Despite an 8% weekly loss and bearish market momentum, some analysts have turned bullish, suggesting a bottom may be in. They cite historical cycles where DOGE posted gains of over 26,000% as precedent for a potential rebound towards $0.30, though current technical indicators and overwhelming seller dominance suggest continued pressure.
Dogecoin continues to face significant selling pressure, trading at $0.095 after a recent drop to $0.08. The memecoin has declined over 8% this week and remains stuck within a supply zone around $0.09, where it faces strong resistance.
According to a crypto analyst, DOGE has touched the lower line of its long-term ascending channel. “The drop to these levels signalled that DOGE might have finally reached the bottom,” the analyst stated, suggesting there is no further downward path.
Citing prior cycles, the analyst noted DOGE rose by 9,200% in 2017 and by 26,485% in the last cycle. This historical precedent leads to a projection that, if a rebound occurs, Dogecoin could see a jump towards $0.30.
Market structure, however, remains overwhelmingly bearish. Data shows seller volume reached 5.4 billion compared to just 2.8 billion in buyer volume. The Buyer-Seller Dominance indicator confirms sellers have dominated for eleven consecutive days.
Technical indicators also signal weak momentum. Dogecoin’s Relative Strength Index reads a bearish 31, while its Directional Movement Index is at 6.3. These readings validate the current trend strength and suggest a likelihood of further losses.
For a bullish reversal to materialize, DOGE would need to reclaim its demand zone around $0.15. Currently, buyers provide only enough support to prevent a steeper decline, likely keeping the price hovering around $0.09 with $0.10 as an upper boundary.
