Dogecoin Bullish Reversal Awaits $0.21 Breakout After 40% Gains

Dogecoin has been forming weekly higher highs, indicating strong demand and bullish market cycles. The key support level between $0.142 and $0.160 has held firm, suggesting another potential breakout toward $0.21. Technical indicators such as the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Market Value to Realized Value (MVRV) ratio all suggest a bullish reversal is forming if the $0.16 level remains intact.

Currently trading at $0.1651, Dogecoin is exhibiting a pattern of weekly consolidation followed by upward moves. Market observers note that each cycle has ended in a higher high, pointing to sustained demand growth. This structure suggests the potential for a continued price recovery in the near term.

According to analysis prepared by Bitcoinsensus, Dogecoin has maintained a pattern of mini weekly cycles. The asset has been ranging for a few weeks before each breakout, and each breakout has formed a new higher high. This trend, seen since late 2024, reflects a growing interest in the asset.

The current bounce from $0.142 again confirms the importance of the demand zone between $0.142 and $0.160. This same level supported strong price rebounds in March and April. At both points, Dogecoin rallied over 40% in the following weeks, backed by rising volume and positive market sentiment.

The recent defense of this zone aligns with historical price behavior. If bulls push above the current consolidation zone, the next key resistance sits near $0.21. Technical indicators now show signs of recovery. The RSI is close to oversold levels, indicating reduced selling pressure. The MACD is approaching a bullish crossover on the daily chart, which could confirm the ongoing reversal trend if completed.

Data from Santiment shows the 30-day Market Value to Realized Value (MVRV) ratio has dropped to -15.43%. This suggests that many traders are holding at a loss, and could avoid selling, which may support price recovery. Dogecoin must hold the $0.16 support to avoid a larger correction. If bulls maintain momentum and break above $0.21, price could target higher levels supported by strong past recovery patterns.