Dogecoin's 12% Drop Sparks Bubble Fears, Analysts Predict Bullish Rally

Dogecoin, the popular meme coin, has experienced a 12% decline this week, sparking speculation about a potential bursting of the meme coin bubble. Despite the recent downturn, some analysts remain optimistic about the coin's prospects.

Crypto analyst Crypto Paradise has predicted a potential rally for Dogecoin above the $0.4 level. The analyst highlighted a bullish pattern that suggests a parabolic move could be on the horizon. According to Crypto Paradise, Dogecoin is currently forming a descending channel pattern, and things are starting to look "interesting" for the foremost meme coin. The analyst noted that Dogecoin has printed a bullish engulfing candle right on the supportive trendline, backed by bullish divergence and a key support zone. These signals indicate a potential bullish move for Dogecoin.

Meanwhile, crypto analyst Master Kenobi outlined two potential scenarios for Dogecoin's future trajectory. The first scenario suggests that Dogecoin could repeat last year's pattern, with a peak reached by the end of February. The second scenario posits that Dogecoin could repeat the August phase, where a pump follows an extended consolidation, with the coin reaching its peak in April or May. Master Kenobi leans towards the second scenario, predicting that Dogecoin could rally to as high as $1.25 before its price peaks in mid-April or May.

At the time of writing, the Dogecoin price has been trading at around $0.26, which is up over 1% in the last 24 hours. Despite the recent decline, some analysts remain bullish on Dogecoin's prospects, citing technical patterns and potential future scenarios.