Dogecoin's price showed signs of a technical bounce as it recovered above a key support level, with technical indicators suggesting a potential relief rally despite the overall bearish trend.

Dogecoin (DOGE) price showed signs of a technical bounce on Monday as it recovered above a key support level. This comes after the popular meme coin plummeted 70% from its cycle high of $0.479 reached in November 2024.

Specifically, Dogecoin is now trading at $0.172. This represents a modest recovery after hitting a low of $0.142 on March 11, 2025.

As the meme coin continues to trade in a descending wedge pattern on the daily timeframe, this pattern is typically considered bullish, suggesting that a potential breakout could occur as the price approaches the end of the wedge formation.

Crypto analyst Ali Martinez highlighted Dogecoin's position within a key price channel. "If this support holds, we might see a rebound toward the mid or upper boundary of the channel," Martinez stated.

$DOGE remains at a key support level within this channel. If it holds, a rebound toward the mid or upper boundary could be in place! pic.twitter.com/iojmu7kIk4

— Ali (@ali_charts) March 13, 2025

The analyst further pointed to previous stock RSI bullish crossovers on the weekly chart, which led to price surges of 88% and 187% in October 2023 and February 2024 respectively. Another bullish crossover appears to be forming now. This technical signal has some analysts setting price targets as high as $3 for DOGE.

On the other hand, network data from IntoTheBlock shows that the number of new Dogecoin addresses has doubled over the past month.

This increase from 16,400 to 34,600 new addresses indicates rising interest in the Dogecoin network and may provide fundamental support for price appreciation.

Despite these positive short-term signals, the weekly chart shows bearish indicators as the price broke down from the $0.215 horizontal support area that had previously acted as resistance in March 2024. This breakdown suggests that Dogecoin's upward movement may have ended. If the decline continues, the next support level to watch is around $0.110.

Technical indicators on the weekly timeframe also remain bearish. Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is below 50 and the MACD has made a bearish cross, both considered signs of a bearish trend.

Trader Tardigrade identified a recurring pattern in Dogecoin price action. According to this trader, DOGE typically forms an initial low as the RSI enters the oversold zone, followed by a second, lower low with the RSI maintaining a similar oversold reading. If this historical pattern holds, Dogecoin could be preparing for an upward move.

#Dogecoin follows the pattern of its last bottom 🔥$DOGE forms an initial low as the RSI falls into the oversold zone, then creates another lower low with a similar RSI reading in the same zone.

If history repeats, an upcoming Bull Run is ahead 🚀 pic.twitter.com/zxLPZrfkOq

— Trader Tardigrade (@TATrader_Alan) March 12, 2025

This comes as the futures market shows increasing interest in DOGE, with the open interest surging more than 4% to $1.40 billion and 24-hour liquidations exceeding $7.24 million.

Moreover, asset managers like Bitwise are pursuing a Dogecoin ETF, which could trigger major activity for the meme coin if approved.

The current technical setup suggests a potential relief rally in the short term. However, this may be followed by another downward movement unless DOGE achieves a weekly close above the $0.215 level.