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Dogecoin has entered a new recovery rally, with on-chain data suggesting a smooth path to $0.31 after a breakout above $0.20.
With the crypto market experiencing a recovery this week, meme coins are on a bullish roll. Top meme coins such as Dogecoin, Shiba Inu, and Pepe have seen price surges of 12% to 13% over the past week.
Currently, Dogecoin, the largest meme coin by market cap, holds a market capitalization of $29.30 billion and is trading at $0.1972. Will the recovery in DOGE surpass the $0.20 psychological mark, leading to an extended bull run?
Dogecoin Reversal Run Nears $0.20 Breakout
In the daily chart, DOGE’s price action shows a bullish breakout from a falling wedge pattern, indicating the potential end of the prevailing downtrend.
Additionally, the recovery has resulted in four consecutive bullish candles on the daily chart. At present, Dogecoin is trading at $0.1973, reflecting an intraday gain of 1.20%.
This suggests the possibility of another bullish candle as the uptrend continues. However, the bull run, which has already surpassed the 23.60% Fibonacci level at $0.1781, is struggling to reach the 50 EMA line.
This highlights the bulls’ challenge in overcoming the $0.20 psychological resistance. Despite this, the short-term recovery has led to a positive crossover in the MACD and signal lines, indicating potential bullish continuation.
Based on the Fibonacci levels, a breakout above the 50-day EMA could target the 50% Fibonacci level at $0.27785.
Analyst Signals Potential Trend Reversal
As the recovery gains momentum, crypto analyst Ali Martinez suggests the possibility of a bullish continuation and trend reversal.
According to Martinez, the trend is nearing a breakout above the supertrend indicator, signaling the start of a bullish phase. However, the bulls need to surpass the $0.21 level to confirm a bullish trend.
Glassnode Hints at Strong Recovery Chances for Dogecoin
In a recent tweet, Glassnode presented the URPD chart of Dogecoin, highlighting that 7% of its supply is concentrated at the $0.20 mark. This makes it a critical resistance level for Dogecoin.
According to Glassnode, a bullish breakout above $0.20 could trigger a price surge to $0.31 due to the limited supply pressure at this level.
URPD shows 7% of $DOGE supply is concentrated at $0.20 – the third-largest cluster after $0.17 and $0.07. This level saw big inflows around Jan 22, but wallets likely bought earlier, raising their cost basis. $0.20 may act as resistance near-term. pic.twitter.com/vHvylx3MdN
— glassnode (@glassnode) March 26, 2025