Dogecoin Shows Bullish Signs After 30% Drop, Key Support at $0.168

Dogecoin, the popular meme coin, is showing early signs of bullishness on lower time frames, suggesting a potential "make-or-break" level that could set the stage for its next major rally. Crypto analyst Crypto Sat has identified a "key reversal signal" on the 2-hour chart, indicating that the recent deep correction may not persist in the near-term outlook for Dogecoin's price. This comes as the meme coin retests a key historic support zone that marked the mid-April market bottom. Since reaching a local top in mid-May, Dogecoin has experienced a 30% drop, raising questions about the sustainability of this support level.

According to analysis shared by Crypto Sat, Dogecoin is exhibiting signs of accumulation following its sharp correction, with a potential double bottom pattern forming on the 2-hour chart. This classic reversal pattern could signal a local bottom and pave the way for a bullish continuation, provided key technical levels hold. The first bottom formed around $0.168, where buyers stepped in to defend support following a sharp selloff. A second bounce at this level, accompanied by supporting volume, would be an early bullish sign. However, the key focus is on the $0.20 neckline resistance, which could decide the next big move. A break above this level would confirm the pattern and signal a sentiment shift favoring bulls. Conversely, a lower low below $0.165 could suggest increasing bearish pressure as buyers fail to defend the once strong support.

Zooming out, the $0.168 level aligns with a historically critical support zone, repeatedly marking local bottoms since mid-2024—the most recent being the mid-April market reversal. This support crosses a descending channel, forming the handle of a wider 4-year cup-and-handle pattern—a potential confluence zone for a breakout setup. A confirmed breakout would set a technical target around $0.75—a staggering 345% gain from current levels in line with the 1.618 Fibonacci extension. However, this bullish case only holds if the $0.168 support level is maintained. Momentum indicators are flashing caution, with the golden cross from May proving to be short-lived as the MACD line widens its gap below the signal line after a death cross to start June—a sign of a prevailing longer-term downtrend. The RSI also indicates weakening buy pressure, continuing its decline below the neutral line to its current position at 42.

Below $0.168 lies a dangerous "gap area"—a price range with sparse previous buying activity, creating little historical support to limit downside. If lost, the next major support zone sits around 47% lower at $0.90, last tested during mid-2024. All eyes turn to the June 15 US spot Dogecoin ETF decision, as a potential external catalyst, opening the doors to demand from traditional investment markets if approved. Those who jumped to speculative plays like Dogecoin over the leading crypto may be forced to reconsider as the Bitcoin ecosystem finally addresses its biggest limitation: scalability. Slow transactions, high fees, and limited programmability have held it back from competing with the Ethereum and Solana networks—until now. And this shift starts with Bitcoin Hyper ($HYPER), Bitcoin’s first real-time Layer 2 that brings Solana-level speed and smart contracts directly to the Bitcoin ecosystem. Powered by the Solana Virtual Machine (SVM) and anchored by a decentralized Canonical Bridge, it enables fast, cheap, and composable dApps—all while staying secured by Bitcoin. With over $1.3 million in its third presale week, investors are already rallying behind $HYPER, potentially credited to its huge 651% APY on staking that rewards early investors.