Dogecoin (DOGE) has once again captured market attention as it retests a crucial multi-month ascending channel. Analysts suggest that a successful rebound from this level could serve as the launchpad for an 86% rally, potentially setting new price milestones in the coming weeks.
DOGE Retests Resistance After 38% Rally
According to renowned analyst Trader Tardigrade, Dogecoin has entered a critical phase. After rallying 38% last week and peaking at $0.288 on Monday, DOGE retraced by 10% amid broader market bearish pressure. Despite the dip, Tardigrade emphasised that the pullback is a healthy correction and part of a bullish setup.
Dogecoin’s current behaviour aligns with a technical retest of the ascending channel it broke out from recently. The asset had spent 146 days trading within the channel, which began on February 24 after a sharp 13% drop. During that period, the upper boundary of the channel consistently rejected breakout attempts, including on May 11 and May 23.
Now that DOGE has successfully broken above this resistance, Tardigrade believes the ongoing retest of the trendline is crucial. If the price holds and bounces off this level, it could validate the breakout and confirm bullish continuation.
Price Projections: DOGE Could Reclaim $0.484
The potential outcome of this retest is attracting serious attention. Tardigrade’s analysis includes a projected move toward $0.484, Dogecoin’s December 2023 high. From its current level of $0.26, this would represent an 86% increase. More impressively, it would offer a 238% return for traders who entered at the $0.143 low in June.
Momentum is building around this thesis, with other experts eyeing even loftier targets. While some believe Dogecoin can hit $0.85 this cycle, others, such as CryptoELITES, argue that $1.46 or even $5 is achievable. According to CryptoELITES, anyone doubting a $5 DOGE in this cycle “doesn’t know anything.”
Related article: Dogecoin Price Path to $0.2596 Open If It Holds Support: Key Technical Insights
Fear and Greed Index Confirms Extreme Optimism
Supporting this bullish sentiment, the Dogecoin Fear and Greed Index currently sits at 80, firmly in the “Extreme Greed” territory. This suggests aggressive buying interest, driven by expectations that the uptrend will continue.
However, high scores on this index also serve as cautionary signals. When market sentiment becomes too euphoric, corrections often follow. In Dogecoin’s case, the recent 10% dip may reflect exactly that, a healthy cooldown in an overheated market.
Still, the prevailing optimism among DOGE holders remains strong. As long as the asset respects its ascending trendline and rebounds with volume, the setup points to further growth.
Final Thoughts
Dogecoin’s technical setup looks promising, and analysts widely agree that the current retest could lead to a massive upside. With price projections reaching as high as $0.484 in the short term, and even more ambitious targets in the long term, DOGE’s path forward depends on whether it can hold its ground above the key trendline. For now, eyes remain locked on the chart as the market waits to see if Dogecoin is ready for its next leap.
