Dogecoin Rebounds 40% After Crypto Market Turmoil: Is Momentum Back?
- Dogecoin rebounds 40% from $0.14 as traders regain confidence and buying momentum grows.
- RSI holds above 40, signaling renewed buying strength and rising optimism among traders.
- Analysts project a 200% rally for Dogecoin with price targets set around the $0.65 zone.
Dogecoin has made a strong comeback as the token jumped more than 40% after last week’s steep market crash that wiped out over $19 billion in crypto value. Its price recovered from a low of around $0.14 and now trades above $0.20, showing that buyers have returned after days of panic selling.
The token held firm between $0.14 and $0.15 before buyers stepped in, marking a clear zone of support. In the last 24 hours, about $15 million worth of short positions were liquidated, and about $7.8 million were lost in long positions.
This shift suggests that short sellers were forced to exit, creating what traders call a short squeeze, a move that often sparks quick, steep gains. Still, the broader picture isn’t fully bullish. CoinMarketCap data shows Dogecoin remains down more than 21% for the week and 30% for the month.
Even so, activity around the coin has picked up again. Daily trading volume rose 81% to reach $6.51 billion, showing traders are not ready to give up on DOGE just yet. The recovery has revived optimism across the meme coin space, but questions remain. Is this the start of a real turnaround or just a brief rally before another drop?
DOGE Price Action: Momentum Builds as Bulls Regain Confidence
From a technical perspective, Dogecoin’s chart shows some signs of strength building up again. The RSI, for instance, has crawled back above 40 after dipping into oversold territory last week. It’s now edging higher, a signal that buying pressure is returning.
If that momentum keeps up and the RSI crosses above 50, traders could start reading it as a shift toward short-term optimism. That would likely push DOGE to revisit the 50% Fibonacci retracement level near $0.22.
Clearing that zone might draw more buyers and open a path toward $0.26 to $0.27, an area that lines up with the 78.6% Fibonacci mark and previous resistance. If momentum stalls, though, the picture changes fast. A drop back toward $0.18 could test the 23.6% Fib level, and if selling deepens, the price might slide to the $0.15 support area.
Experts Eye Long-Term Patterns Behind Dogecoin’s Moves
According to analyst Javon Marks, the meme coin still trades inside an uptrend that hasn’t been broken. He pointed out that prices continue to make higher lows while staying above the trendline that capped movement for months.
Marks notes that this setup keeps the structure healthy and could push DOGE toward $0.6533, which would be more than a 200% gain from where it sits now. The market, in his view, shows signs of steady accumulation as traders defend each dip. As long as that pattern holds, the uptrend remains intact.
Related: Bitcoin and Ethereum Rebound as Global Crypto Market Recovers to $3.91 Trillion
Another analyst, Trader Tardigrade, drew attention to Dogecoin’s long-term chart. He noted that the token’s latest correction of about 78.7% from its peak is in line with earlier drops of roughly 80% seen before major rallies.
Each time that level was reached, in 2015 and 2020, DOGE followed with what he described as a “massive surge.” Tardigrade’s observation suggests the market may be repeating that familiar rhythm.
If so, the current stage could mark the start of another upward phase as long as sentiment doesn’t fade. In his outlook, the analyst believes Dogecoin has the potential to break past $1, with the possibility of climbing toward $7 if momentum and sentiment align over time.
In summary, Dogecoin’s recovery still hangs in a delicate balance. The recent strength shows that buyers haven’t given up, yet the market needs consistency before confidence truly returns. If volume stays high and sentiment holds, the coin could build on its gains. For now, traders are watching, quietly, but with intent.
