Dogecoin (CRYPTO: DOGE) appears to be attracting interest from large buyers as the meme coin's recent downturn has seen whale accumulation surge, and traders are predicting a bullish breakout.

What Happened: Crypto chart analyst Ali Martinez identified two key resistance levels that, if broken, could ignite the next major rally.

“Dogecoin is facing two key resistance walls at $0.18 and $0.21. Breaking through both could be the catalyst for the next major bull rally,” the analyst stated.

If the price breaks through the first resistance at $0.18, it could encounter another round of selling pressure at the Fibonacci (0.382) level, which is around $0.21.

"If bulls manage to push through both, the Fibonacci (0.5) level at around $0.28 could be the next target, leading to a potential 100% move from the March lows."

Trader Javon Marks pointed out that Dogecoin is forming higher lows, which is a common technical indicator that large buyers are stepping in to bid up the price.

"For those wondering what's up with Dogecoin, it's forming higher lows, which is a good sign that buyers are still in control. We're still targeting $0.6533 for a 270% move."

Trader Tardigrade predicts a J-shaped rebound for Dogecoin, highlighting its history of rallying after an accumulation phase before retracing.

"We're seeing a huge uptick in Dogecoin whale activity as they've purchased over 220 million DOGE this month alone," said Martinez.

The meme coin’s long liquidations touched $1.26 million, the lowest level since March 23, according to Coinglass data. Open interest increased 1.7% to $1.6 billion in a single day, showing that trader interest is growing.

At a recent Town Hall in Wisconsin, Elon Musk dismissed rumors that the government is considering Dogecoin as a crypto payment option, and the Department of Government Efficiency has no ties to DOGE.

"It's not true that the U.S. government is considering making Dogecoin a preferred cryptocurrency payment option. We're focused on improving government efficiency and service delivery to the people of Wisconsin."

Related Link: Pay Attention To This Key Level For Dogecoin To Determine Next Major Trend, Says Analyst

Elon Musk Buys Dogecoin Is A 'HIGHLY LIKELY SCENARIO' Says Trader As Meme Coin Faces J-Shaped Bounce Back