DOGE double-bottom pattern hints at price rebound to $0.25

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Key takeaways:

• DOGE has formed a double bottom and broken through a lower time frame trendline, potentially indicating a move towards $0.25.
• Memecoins have demonstrated strong performance as a narrative sector over the last 90 days.

Dogecoin (DOGE) is currently trading near $0.17, experiencing a modest rebound after fluctuating between $0.13 and $0.25 since February. Despite this sideways movement, DOGE remains a prominent cryptocurrency, holding its position as the 7th most traded crypto by 24-hour trading volume. Investors are closely watching to see if the memecoin can reclaim the significant psychological level of $0.25.

DOGE 1-day chart. Source: Cointelegraph/TradingView

The daily chart analysis reveals DOGE has formed a double bottom pattern, a classic bullish reversal signal, with a support level established at $0.15 in recent weeks. This long-term formation suggests a potential upward movement towards $0.25, a target that could be achieved sooner than anticipated.

Over the past couple of months, DOGE has traded within a descending channel, a pattern that often precedes an uptrend breakout. Crypto analyst Trader Tardigrade shared an analysis on X, noting a decisive move above the 50-day trendline, followed by a successful retest and a continuation of the uptrend.

Dogecoin analysis by Trader Tardigrade. Source: X

This shift in the lower time frame, characterized by new higher lows and higher highs, indicates a possible trend reversal from the previous downtrend. Supporting this, on-chain UTXO realized price distribution data shows the largest holder cluster around $0.177, holding 8.94% of the supply. A sustained close above this level could pave the way to the next resistance at $0.206 (7.54%) and potentially $0.36 (3.83%), boosting optimism among analysts.

DOGE UTXO Realized Price Distribution. Source: Glassnode

Related: XRP news update: Ripple bank license application, chart pattern fuel potential rally to $2.65

Memecoins continue to outperform other sectors

Recent on-chain metrics provide a mixed perspective. A post from Glassnode on X highlighted that DOGE holders are experiencing their highest loss levels in months, suggesting profit-taking or potential distress selling at current price points. This indicates short-term pressure, but the memecoin narrative remains relevant within the broader crypto market.

Data from DYOR shows that memecoins have been a leading sector over the last 90 days, delivering an impressive 56.67% return, surpassing the performance of the broader cryptocurrency market.

90-day Relative Strength of Crypto Narrative. Source: DYOR/Dune Analytics

This suggests a latent upside potential for DOGE, even if the $0.25 target isn't immediately reached. Historically, memecoins have seen gains of 300-500% during peak hype cycles, as observed in late 2024.

Therefore, DOGE is at a pivotal point, with technical indicators suggesting a near-term push towards $0.25 due to its double bottom formation and trendline breakout. Simultaneously, the memecoin market dynamics imply a longer-term upward trend fueled by retail investor interest. A decisive move above $0.177 could be the next technical confirmation to watch for.

A break above $0.25 could potentially occur by late 2025, especially if Bitcoin's next upward surge amplifies rallies in altcoins. The current period of losses may represent a consolidation phase before a breakout driven by market enthusiasm.

Related: Bitcoin price aims for new highs but ‘divergences’ set $110K as resistance

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.