Dogecoin (DOGE) Shows Signs of Strong Recovery After Months of Downward Movement

Dogecoin price is showing signs of a strong recovery after months of downward movement. The popular meme cryptocurrency is now trading at around $0.20, up over 4% in the last 24 hours.

Several market analysts believe DOGE is setting up for a big move upward.

TradingShot recently noted that Dogecoin broke above the Lower Highs trend line that began two months ago. This technical breakout could be the start of a new bullish phase. While the natural resistance remains at the 1-day MA50 (around $0.30), the recent price action and rebounding from lows indicate a new upward leg has started.

7% of DOGE Supply Clustered Around $0.20

The upward momentum is backed by data from Glassnode showing that 7% of DOGE supply is clustered around the $0.20 price level. This concentration could act as a resistance, but if broken, there’s little supply until $0.31.

That gap creates the potential for a sharp 55% increase. The lack of resistance between these price points could allow for quick price movement once volume picks up.

Large holders appear to be betting on this upward move. Crypto analyst Ali Martinez revealed that Dogecoin whales have accumulated over 200 million DOGE in the past two weeks alone.

These large investors, holding between 1 million and 10 million DOGE, have increased their holdings to 10.5 billion DOGE. This accumulation is worth approximately $2.14 billion at current prices.

The timing of this whale activity is worth noting. These large buys often happen before price surges, showing confidence despite recent market volatility.

On March 24, the newly formed House of Doge announced “The Official Dogecoin Reserve” with an initial purchase of 10 million DOGE tokens. This corporate wing of the Dogecoin Foundation aims to create a payments ecosystem.

The announcement helped fuel positive sentiment in the Dogecoin community. The foundation has stated that the purchased tokens will be moved to a holding account that will be made public for transparency.

From a technical standpoint, analyst Trader Tardigrade points out that Dogecoin has breached a three-month descending trendline that formed over the course of 2025. This breakout could set up a short-term relief rally.

The more ambitious price predictions are remarkable. Some analysts believe DOGE could reach $0.80 this cycle, surpassing its previous all-time high of $0.73.

Others, like Kamran Asghar, suggest much higher targets. Asghar compared current price action to previous bull cycles where Dogecoin surged over 20,000% and 44,000%. Based on these patterns, he projects a 2,852% rally to $6.

Analyst Doge Lord agrees with the $6 target, citing Elliot Wave theory. According to this analysis, Dogecoin is in the third wave of a five-wave structure on the 7-day timeframe.