Dogecoin Enters Crucial Zone, Expert Predicts Uptrend

Dogecoin's price has been volatile in recent weeks, with a brief bullish surge on Thursday followed by a bearish decline that saw the cryptocurrency fall to $0.201. This decline, which represents a nearly 40% drop in the past month, has sparked speculation about a potential bear market phase for the meme coin. However, market experts have identified a key zone that could signal an upward trend for Dogecoin.

Trader Tardigrade, a market expert and investor, has highlighted that Dogecoin has entered a crucial order block zone, which is a region where substantial buying or selling activity is concentrated. These zones often serve as strong support or resistance levels during periods of heightened volatility. With many large limit orders waiting to be executed in this zone, Trader Tardigrade is confident that Dogecoin will move to the upside in the coming weeks.

The expert anticipates an uptrend for DOGE, as past scenarios have preceded significant rallies in the following weeks. If buying pressure increases as Dogecoin trades within this order block zone, it could ignite bullish momentum, allowing the meme coin to reclaim key resistance levels and potentially reach a new all-time high.

A key pattern cited in the 4-hour time frame chart further supports Dogecoin's potential for an uptrend. Trader Tardigrade noted that the meme coin has formed a Double Bottom chart pattern, an indicator that usually signals an upward trend. If Dogecoin effectively performs the bottoming chart formation, it is expected to resume its upward movement, with a potential rebound to the $0.22 level in the following days.

While the double bottom hints at growing momentum, Dogecoin's Relative Strength Index (RSI) has undergone a bullish breakout from a horizontal resistance line. This breakout is likely to support the meme coin's anticipated price recovery triggered by the bottoming pattern.

Despite the recent price decline, investors are beginning to demonstrate interest in Dogecoin. On-chain data shows that large investors or whales have returned to the market, heavily acquiring the meme coin. These whales have accumulated more than 530 million DOGE in the past 72 hours, signaling confidence in its long-term prospects.