Dogecoin Plummets 50% After April Surge, Analysts Predict 100% Rebound

Dogecoin, the popular meme coin, experienced a significant price crash in April, following a month of upward movement. This downturn has led to a shift in investor sentiment, pushing many back into a state of fear. However, this price drop might only be a temporary setback, as there are indications that Dogecoin could be poised for a rebound.

Crypto analyst Astronomer has suggested that Dogecoin may have reached a bottom after its rejection from the $0.18 mark. The analyst draws a parallel to October 2024, when Dogecoin had similar fundamentals and subsequently rallied by around 500% to a new local peak of $0.5. Astronomer believes that the current market conditions are similar to those in 2024, with the altcoin market potentially bottoming out. This time, however, the analyst expects Dogecoin to rally even higher than its previous peak.

At the current level, it is anticipated that Dogecoin's price will reverse, offering substantial rewards for investors. Astronomer noted, “Given this is an altcoin and the expectations are likely beyond $0.5, having heavy spot bags already pays for little risk. If you want a defined risk for a defined reward, I think a long as presented also makes sense.”

Another crypto analyst has highlighted a potential reversal pattern for Dogecoin, indicating that the meme coin is showing bullish divergence on the chart. The Relative Strength Index (RSI) is currently bullish, and a break above the $0.206 level could be positive for the price. With bullish sentiment recovering, Dogecoin is gaining the momentum needed to move upwards. If the meme coin can close above the trend line, it is expected to turn bullish.

The first major target for Dogecoin's price is the resistance at $0.2. Once this level is breached, the next target is $0.27, with the final target for a 100% increase lying above $0.33. According to the analyst's forecast, the price of Dogecoin could potentially reach $0.35, marking a significant recovery from its recent lows.