Dogecoin Surges 34% After Retesting Key Support Zone

Dogecoin (DOGE), the leading memecoin, is exhibiting signs of a potential trend reversal following weeks of choppy and bearish price action. The cryptocurrency has gained momentum after retesting a key demand zone at $0.115, which previously fueled its breakout from a flag consolidation pattern. This bullish pressure has resulted in DOGE surging by approximately 34% before experiencing a bearish run. Since its retest on the weekly chart, DOGE prices have been steadily accumulating bullish momentum.

This bounce from the critical support zone has not only restored holder confidence but has also attracted new momentum-driven interest. The sharp recovery serves as a strong technical signal, often interpreted as a validation of bullish demand in the market. Supporting the price rally is Dogecoin’s Weighted Funding Rate, which has shown a consistent increase over the last three days. This metric indicates that more market participants are willing to pay a premium to keep their long positions open in anticipation of further price gains.

The rise in DOGE’s Funding Rate reflects positive sentiment in the market and suggests a shift in bias from cautious optimism to more confident accumulation. In most cases, rising Funding Rates paired with price gains indicate that bulls are gaining ground while short-sellers retreat from market volatility. Over the last 24 hours, Dogecoin price has increased by nearly 4%, while seven-day charts show a near-20% increase for the memecoin. This recent performance is helping to offset its 30-day decline.

Cryptocurrency analyst BitGuru suggests that Dogecoin price can record an impressive rally above $0.1850 in the near future. According to the analyst, DOGE needs to hold above the $0.1666 price level to trigger this rally. BitGuru describes the recent price action as a “classic cup-shaped recovery,” which shows a gradual decline in DOGE price followed by what the analyst calls a “bullish beauty” that signals a longer sustained rally. If the price holds this level, we’re likely heading toward a fresh breakout above $0.1850 in the next leg up.

If Dogecoin fails to maintain support at $0.1666, it could potentially fall toward $0.1524 again, which would dampen enthusiasm for a continued rally. Another analyst known as Master Kenobi has made an even more optimistic prediction, suggesting that DOGE could reach a new all-time high within 55 days. Master Kenobi’s forecast is based on Dogecoin breaking past a key trendline, with a potential valuation of $0.90 by mid-June. Some analysts have even suggested that Dogecoin could eventually approach the $1 mark in the longer term, though this would require a rally of nearly 500% from current prices, supported by a combination of fundamental factors and positive on-chain metrics.

The heightened market interest in Dogecoin comes after the recently concluded DOGE day, a community-driven event that typically generates increased attention for the cryptocurrency. For DOGE investors, it remains crucial to monitor whether bulls can maintain control of the market. A dip in volume or a cooling of the Funding Rate could hint at fading bullish interest. Conversely, if Dogecoin continues to hold above its demand zone while climbing steadily, the case for a sustained reversal becomes stronger. The coming days will be key in determining whether this is a sustainable trend shift or just another short-lived rally.

Overall, Dogecoin appears to be at a critical turning point. With technical indicators showing promise and market sentiment turning increasingly positive, many traders are watching closely to see if this popular memecoin can sustain its recovery and continue its upward trajectory in the coming weeks.