Following a recent pullback, meme-based cryptocurrency Dogecoin (DOGE) is showing signs of renewed bullish momentum, with analysts pointing to the possibility of a major rally that could send the token soaring by as much as 174%.

Dogecoin Price Analysis: Key Support Holds After Steep Drop

Dogecoin (DOGE) recently faced a sharp correction, falling nearly 10% from $0.25 to around $0.21. However, the popular meme-based cryptocurrency found strong support near the $0.215 level, halting the decline and sparking cautious optimism among traders. According to CoinDesk Research, this level saw increased buying activity, solidifying it as a key "defense zone."

A decisive break above $0.2325 could trigger a bullish impulse toward $0.250 and $0.2620, with further gains possible if momentum holds. Source: MyCryptoParadise on TradingView

Technical analysts describe the price action as forming a V-shaped reversal, with bullish pressure re-entering the market around the $0.215 mark. This rebound was accompanied by a surge in volume—over 10 million DOGE traded within a short period—signaling renewed interest among Dogecoin investors.

The Relative Strength Index (RSI) on the 4-hour chart is still in neutral territory, suggesting consolidation rather than an outright bearish trend. At the same time, DOGE is navigating a falling wedge pattern, a structure typically considered a bullish reversal indicator.

DOGE Price Prediction: $0.65 Target Still on the Table

While short-term disruptions are possible, long-term expectations are optimistic. Analyst Javon Marks remains bullish on Dogecoin, anticipating the potential that it could increase to $0.65 someday—a 174% rise from the current price of approximately $0.22.

Dogecoin (DOGE) remains on track for a potential 174% rally toward its initial target of $0.6533. Source: JAVON MARKS via X

Marks sees a key technical development: a breakdown of an extended trendline that had capped DOGE’s price since its 2021 peak at $0.70. “This breakout has initiated an ongoing trend of higher highs and higher lows,” he noted, observing that the underpinnings of a long-term uptrend are in place. Longer-term targets of $0.74 and even $1.25 were mentioned, but these are open to more general market circumstances.

Resistance Zones Pose Dogecoin Challenge

Before reaching ambitious targets like $0.65, DOGE must first overcome significant resistance. According to data from multiple sources, the $0.25–$0.26 range represents a critical barrier. This level acted as support in late 2024 but flipped into resistance after a price reversal earlier this year.

Dogecoin (DOGE) was trading at around $0.23, up 3.99% in the last 24 hours at press time. Source: Brave New Coin

DOGE’s most recent test of this zone in early May failed to hold, peaking at $0.24 before retreating. Analysts suggest a decisive close above $0.26, backed by volume, is essential to confirm the bullish breakout and validate the upward Dogecoin prediction.

Failure to hold above $0.214, however, could invalidate the setup and send DOGE back toward the $0.20–$0.18 range. For now, bulls appear to have the upper hand, with steady accumulation seen just above the key support.

Technical Indicators Align for Breakout Potential

From a structural standpoint, Dogecoin has completed a W-X-Y-X-Z corrective pattern, with the most recent wave forming the foundation for a new impulsive rally. If wave (v) begins, as projected by Elliott Wave theory, DOGE could reach new local highs in the coming weeks.

On shorter timeframes, DOGE is forming a descending triangle with support around $0.215, close to the 0.236 Fibonacci retracement level. This base is crucial for the next move higher. Breaking above $0.223 would confirm the start of the next bullish wave, according to analysts.

As shown by the TradingView chart data, the target of the next leg using the Fibonacci extension is between $0.258 (1.618 extension) and $0.280 (2.0 extension)—which would be a potential 31% above current levels.

On-Chain Data Shows Growing Dogecoin Network Usage

Beyond price charts, on-chain metrics paint an even stronger picture for the Dogecoin network. Wallet activity has picked up, with new addresses growing over 100% and active addresses growing 110% in the past week. Even zero-balance