Dogecoin Price Prediction: Is 50% Rebound Imminent?

Dogecoin Price, the world’s largest memecoin, is facing huge selling pressure amid a general market decline.

The price chart suggests DOGE is now in a consolidation phase after a sharp decline on Monday that continued until early Tuesday.

State of the Dogecoin Price Outlook

On Monday, DOGE slipped below the daily Simple Moving Average (SMA) 200 at $0.24 for the first time since October 2024.

The drawdown continued into Tuesday’s session, with prices touching lows of $0.195. DOGE has lost over 15% of its value in the past two days.

However, the price has since recovered, and DOGE is currently trading at $0.2071, according to market data.

Investor activity is still low, as indicated by a 50% decrease in the daily trading volume.

Dogecoin’s price had previously formed a strong support at $0.24. With the recent price decline, onchain analysts pointed out that DOGE’s key support is now at $0.19.

Ali emphasized that the probability of a deeper correction toward $0.060 increases if Dogecoin drops below $0.19.

On the contrary, Dogecoin’s ability to rise from this support line and reclaim the daily SMA 200 level could imply diminishing selling pressure.

From here, Dogecoin may try to rally to the 50-day SMA of $0.30, where it could face resistance.

Onchain Sentiment to Note

Ali Martinez recently posted on X to highlight another Dogecoin price dynamic.

According to the analyst, Dogecoin’s total futures trading volume is currently $992 million.

This figure is a huge decline from the $58.2 billion recorded in November, signaling a big shift in market interest or liquidity.

Factors like broader crypto volatility, fading hype, or traders pivoting elsewhere are likely responsible for the declining DOGE futures trading volume.

DOGE’s next move might hinge on whether it can reignite that momentum.

Some market participants think the current trend suggests an end of the altcoin season.

Their sentiments are based on the fact that other top altcoins have dropped profusely since the start of the week.

Altcoins have faced severe pressure as investors look elsewhere. The sector is still hurting from last week’s Bybit attack.

Moreover, the broader crypto market remains volatile, which puts more pressure on Dogecoin’s price.

The price of Bitcoin fell below $90,000, reaching its lowest valuation since mid-November.

The leading digital asset is now traded for $86,735, down 9.8% in the past seven days.

Rebound or Pullback: Which is Imminent?

While traders applaud Dogecoin’s immediate gains, market observers doubt the coin’s long-term viability.

According to onchain trends, DOGE’s recent gain is driven by social media talk, celebrity endorsements, and retail speculation.

Given Dogecoin’s high volatility and lack of practical utility, many analysts predict the gain will easily disappear.

However, some believe positive news in the ecosystem, like approving a DOGE Exchange-Traded Fund (ETF), could drive a 50% rally.

The market will watch to see what happens next, as it is unclear if the recent spike signals a rebound or a transient surge before another downturn.

Nevertheless, Dogecoin price potential to inspire market excitement is evident.

Analysts like Tardigrade remain optimistic, noting that DOGE is completing its fourth falling wedge, which previously led to a 445% rally.