Dogecoin (CRYPTO: DOGE) prices rose 1.64% over the past 24 hours on Thursday evening, suggesting that the meme coin might have hit bottom.

What Happened: Dogecoin encountered some bullish signs as it appeared to be exiting its sell-off phase and prepared for a rally.

TradingView data showed that the Moving Average Convergence Divergence (MACD) indicator on Dogecoin supported an optimistic trend reversal for the meme coin.

The MACD, often used to spot trend changes, momentum and potential buy and sell signals, showed that Dogecoin had flattened from late February into March.

The MACD line appeared to be on the verge of moving above the signal line, which could spark a price rally for DOGE. This could put DOGE on a recovery path toward $0.20, a level where the meme coin had encountered resistance for about 11 days.

Analysts had earlier predicted that DOGE might bounce back to higher levels if the price found stability. However, DOGE slipped below this support level and the recent rebound move could indicate a shift.

As of press time, the DOGE price was trading at $0.1715, showing little change over the past 24 hours. However, there was less activity from DOGE investors as the trading volume declined by 32.09% to $1.02 billion.

Why It's Important: Analysts noted that investors remained apprehensive as the chart displayed a death cross. The 23-day moving average crossed the 200-day moving average, leading to a slip from $0.24 to $16. An analysis also showed that another death cross was likely pending.

However, with the MACD indicator flashing bullish signals, some anticipated that DOGE could rally as high as $4 in the long term.

According to crypto analyst Ali Martinez, the DOGE price charts can move to $4 if it sustains between $0.16 and $0.19.

"Dogecoin price action is showing some interesting signs of a potential trend reversal. If the bulls can manage to keep the price afloat above the 200-day MA and if MACD generates a bullish crossover in the coming days, then we might see a move towards the 0.2 Fib level, at 0.198,” said Martinez.

If the rally continues, the next target on the table is the 0.382 Fib retracement level, at 0.24, which provided strong support during the previous bear market. A break above this level could open the door for a further rally to 0.5 Fib, at 0.39, and potentially even higher to 0.618 Fib, at 0.48.

"A sustained rally above the 0.5 Fib level could propel the price towards 1 Fib, at 4.0. However, it's important to note that such a strong rally is unlikely to occur in a single year. Instead, it's more likely to unfold over several years," the analyst explained.