Despite a recent 24-hour decline, meme coin Dogecoin has shown strength in the past week, recovering from May lows and setting the stage for further gains, technical analysis shows.

After hitting lows of $0.16428 last week, the meme coin quickly rallied to highs of $0.259 on May 23, flipping a key resistance level around $0.22 that previously capped its growth since late April.

This breakout also comes as broader market sentiment shifts bullish, with several major altcoins also registering gains.

Dogecoin still has a lot of room to run this year in terms of price action, technical analysis shows, with cycle analysis now pointing to $3 before the end of 2025.

Dogecoin Monthly MA50 Rebound Mirrors 2017 And 2021 Cycles

An analysis posted by InvestingScope on the TradingView platform showed that Dogecoin has just rebounded from the 1M MA50, a long-term moving average that played an important role in launching its past explosive rallies.

Looking at Dogecoin’s price action since its launch in December 2013, the analysis highlighted three cycles, with the first two cycles leading to new price highs.

As shown by the Dogecoin monthly candlestick chart shows, Dogecoin bounced off the 1M Moving Average 50 in September 2017 and again in February 2021. Notably, both rebounds marked the final retest zones before the meme coin surged more than 2,400% to new all-time highs.

This same setup has now returned in 2025, with the monthly MA50 acting as support once again around $0.13. The similarity in price structure has opened up the possibility that the meme coin is repeating the same bullish cycle that previously carried it from below $0.002 to $0.73. Should this fractal pattern play out again, this would lead to a parabolic rise above $3 by the end of the year.

$3 Target Based On Average Cycle Rally Of 2,600%

Each of the previous cycles rallies followed an accumulation phase with consolidation near the 1M MA50, followed by a sudden explosion in price. The first rally in 2017 pushed the Dogecoin price from $0.0007 to $0.01827 over the space of two months, which is a 2,824% return from bottom to top.

Similarly, the bounce off the 1M MA50 in 2021 led to a 2,403% run from bottom to top and peaked at $0.73. Applying a similar percentage gain to the most recent low around $0.13 would place the next cycle top near the $3.00 mark.

The analyst also cited strong technicals on the daily timeframe to support this outlook. The RSI reading of 64.264, combined with a positive Moving Average Convergence Divergence (MACD) of 0.014 and an Average Directional Index (ADX) above 32, indicates growing bullish strength for Dogecoin.

Dogecoin is currently priced at $0.2279 after shedding 6.9% over the past 24 hours. This pullback has brought the price close to a possible retest of the former resistance at $0.22.