Dogecoin (DOGE) price is showing signs of a potential bullish trend following a 16% price recovery and could continue if it manages to break through a crucial resistance level, according to technical analysis.

Dogecoin has recently been influenced by broader market trends and macroeconomic factors, particularly the fallout from President Donald Trump’s tariff policies.

After reaching a yearly high of $0.4350 on January 18, Dogecoin experienced a dramatic decline, plummeting 67% to a low of $0.1430 on March 11. However, recent positive performance indicates that a new bullish wave may be emerging.

Dogecoin May Enter Bullish Phase If It Breaks Through Resistance At $0.21

Highlighting the SuperTrend indicator, which helps identify price trends, market analyst Ali Martinez suggests that Dogecoin could enter a bullish phase if it manages to break through the resistance level at $0.21.

The analyst further identified the key support floor for the Dogecoin price at $0.177, which will be crucial in determining whether the token can sustain its recovery or if it will face another downtrend.

If Dogecoin fails to hold this support level, it could revisit once again the $0.14 price point, where significant buying pressure previously helped support the token and prevent further decline. This scenario could erase the gains made over the last two weeks.

7% Of Total Supply Is Concentrated At The $0.20 Level

Adding weight to Martinez’s analysis, data from Glassnode reveals that 7% of Dogecoin’s total supply is concentrated at the $0.20 mark, making it the third-largest concentration after $0.17 and $0.07.

According to Glassnode, this concentration suggests that the $0.20 level may act as a formidable resistance point in the near term, as many wallets likely acquired their holdings at lower prices, posing an obstacle to the token’s ability to surge higher.

In a more positive note for the token and despite the current uncertainties surrounding Dogecoin’s price, analysts remain optimistic about the memecoin’s long-term prospects.

Analysts Are Optimistic Despite Current Uncertainties

According to experts like AMCrypto, Dogecoin has recently tested a multi-year support trendline, which is a significant technical indicator that could favor the token’s ability to sustain an upward move.

“Memes are slowly moving up now, and I expect DOGE to lead the rally,” one analyst stated, setting a target of $0.50 in the second quarter of the year.

Other analysts, including ChartingGuy, have suggested that Dogecoin could aim for a new all-time high of $1.60, representing a staggering potential increase of 742% from its current levels and surpassing its previous record of $0.7316.