Dogecoin Price Prediction: $0.86 Target? Analysts Signal Breakout

Accumulation Pattern Suggests DOGE Reversal in Play

The recent market shift suggested that Dogecoin (DOGE), the crypto sector's most established mem coin, is at a critical point as technical formations correspond with accumulation patterns. Despite the asset’s recent weakness, optimism is high as traders anticipate an early sign of a breakout.

Dogecoin Builds Base for Reversal

According to analyst Ali, DOGE remains on a long-term rising channel that has determined its course since the beginning of 2023. The current price stands around the 0.618 Fibonacci retracement mark at $0.21, which has historically been a firm support level in upward trends. The bottom of this channel remains strong, indicating that the recent correction could be exhausting.

DOGEUSD 1D CHART | SOURCE: X

The analyst noted key upside targets at $0.29, $0.45, and $0.86, in line with important Fibonacci extension zones. The mid-channel trendline near $0.45 can be used as a test point if momentum gains strength, while the upper boundary is at $0.86, the long-term bullish target. 

Technically, the setup is constructive as long as the price holds above $0.16. This is typical of an accumulation-to-expansion stage in which a period of structural support consolidation is frequently followed by a surge. For traders, a sustained close above the $0.21-$0.25 zone will be a bullish confirmation.

DOGE Buyers Defend Lows

Analyst Tardigrade also highlighted a bullish indication from a double bottom formation. This trend, which is near $0.175-$0.18, is an indicator that buyers have begun defending the major support. More so, the neck of this pattern lies approximately at $0.216, and a resounding break over this level could confirm the reversal formation.

DOGEUSD 1D CHART | SOURCE: X

If confirmed, the forecast shift out of this structure targets $0.24- $0.25, suggesting that recovery could be seen in the short-term. The repeated defense of the same low is a sign of a rising market psychology as buyers intervene where sellers once dominated.

Traders will be keen on the expansion of volume and a strong close above the neckline, which would lead to fresh momentum in the crypto's trading pairs.

Momentum Hints at Dogecoin Rally

Additionally, momentum data support the emerging bullish inclination. With an RSI of about 37, the market is slowly nearing recovery, reversing bearish momentum. In the meantime, the MACD is below the signal line, with histogram bars shrinking, which indicates that the downward momentum is decelerating. A crossover above the signal line could validate the attempt for an early rebound.

DOGEUSD 1D CHART | SOURCE: TradingView

Support is stuck at $0.17, while resistance is near $ 0.21. In the meantime, the trend is slightly bullish, yet further stabilization could cause a shift in favor of buyers.

If Dogecoin holds position above the bottom channel and breaks out above the $0.216 price level, a mid-term rally up to $0.45 is imminent. However, the structure could break if the $0.17 support is broken, slowing down recovery. Overall, the memecoin seems to be establishing a foothold in its next step, and with momentum getting better, a recovery could be in the near term.