Dogecoin (CRYPTO: DOGE) price has taken a hit in the last week, slipping from around $0.25 on May 23 to slightly above $0.20. Although this drop shows clear short-term weakness, analysts see possible signs of a rebound.

What Happened: Analyst Setupsfx on TradingView said that despite recent losses, Dogecoin could still stage a comeback. The analyst noted the price is moving sideways and pointed to chart phases called distribution and accumulation—periods when traders either sell heavily or gradually buy back in. That sideways movement makes the market uncertain and difficult to predict.

The analyst highlighted a descending trendline that started in March 2023, showing repeated failure for the coin to break higher. The same pattern stopped price advances around $0.14 back in July. That history of failed breakouts underscores how stubborn resistance levels have been.

The same chart points to an accumulation phase from June to October 2024, with a peak near $0.46 in December, largely boosted by broader interest after Trump-related market events.

Since the December peak, the coin slipped back down, reaching familiar territory near the past accumulation area around $0.12. Currently, it’s trading above the $0.16 and $0.20 range. That range sits just over the 2024 buying area and is being watched closely. The analyst says a brief dip into this range may happen again, but also sees it as a potential base for a rally.

There’s optimism in the possibility of Dogecoin eventually hitting $2. To get there, the price would need to increase by about 900% from its current value. The analyst shared this prediction as part of a broader outlook, forecasting a climb to $2 by year-end if the right breakout occurs.

However, he stressed a cautious path forward. “Focus on smaller, interim price targets,” he advised, adding that the $2 mark could still be months or years away.

Dogecoin Price Action: Another analyst, Klejdi Cuni, examined short-term charts for signs of a rebound. He pointed to an inverse head and shoulders pattern forming on the 1-hour chart. The setup includes three lows, with the middle one being the deepest. The center trough formed on May 25, while the right shoulder appeared between May 23 and May 24.

According to Cuni, this formation is not large-scale but still meaningful for traders who move quickly. At the time of his analysis, Dogecoin had not yet completed the left shoulder.

If DOGE breaks above the neckline of the pattern with strong volume, it could lead to a fast rally. If the coin clears this setup, the first move would likely target the $0.239 level.

Passing this point would be a signal that the market might be willing to push higher. The next milestone after that is $0.25, which represents a return to the coin’s most recent high in May.

Hitting $0.25 is a key psychological level. A move above that level could send the price toward $0.30. Small moves like that can open the way for bigger gains.