Dogecoin (CRYPTO: DOGE) has been struggling to find its footing since February. After a modest 4.28% gain in January 2025, the cryptocurrency took a sharp dive, losing 38.69% in February and another 17.37% in March.

As it currently wrestles with bearish forces at $0.1653, some analysts warn that failing to hold above $0.16 could send it plummeting to $0.06. However, despite this gloomy outlook, a well-known market analyst, Trader Tardigrade, sees a potential reversal forming.

As highlighted on Monday (April 2), Trader Tardigrade is keeping an eye on a bullish inverse head and shoulders pattern unfolding on the 4-hour Dogecoin chart. If confirmed, this setup could help the meme coin reclaim its lost ground and push toward the once-solid $0.20 level, which now acts as resistance.

The inverse head and shoulders pattern is a well-known signal for a market turnaround. It consists of a lower dip (the head) between two smaller drops (the shoulders). The neckline connects the peaks between these dips, and a breakout above this line could confirm a trend reversal.

A Critical Breakout Level At $0.1760

Trader Tardigrade’s analysis suggests that Dogecoin’s left shoulder appeared when prices hit $0.1658 on March 29. The asset then formed the head when it dropped to $0.1601 on March 31. Most recently, on April 2, the right shoulder developed as the cryptocurrency slipped to $0.1677.

The neckline of this pattern sits at $0.1760. If Dogecoin can break through this level, a move to $0.20 could be within reach.

Historically, this type of pattern forms after a prolonged downtrend and often hints at a price recovery. A successful breakout above $0.1760 could push it toward a 20.99% gain, hitting the $0.20 mark. While this increase might seem modest, reclaiming $0.20 would be a psychological win for traders and a step toward a broader rally.

Dogecoin: A Final Hit At New All-Time Highs

While short-term charts indicate a possible rebound, another analyst on TradingView is highlighting a bullish divergence on Dogecoin’s 3-month chart. This means that while Dogecoin’s price has been forming higher lows, its RSI—a momentum indicator—has been trending downward.

This mismatch is often a sign of an impending rally.

Moreover, the analyst noted that while several reports are focusing on a potential drop below $0.15, which could trigger a deeper decline to $0.06, this narrative might be diverting attention from the broader bullish trend.

“We are still in a bull market and we can clearly see that on the chart. We are making higher lows on the 3-month chart and the 3-month RSI is showing divergence which usually leads to a strong rally.”

The analyst did not provide a specific price target but advised Dogecoin holders to be patient and not get swayed by short-term negative headlines. Instead, they should maintain a long-term bullish outlook.

“We are still in a bull market ... don't be fooled by the news. We're going to new all-time highs.”