Dogecoin price experienced a recovery on December 11th as the recent sell-off in the cryptocurrency market eased and traders took advantage of the dip.
The largest meme coin in the crypto industry, Dogecoin (DOGE), bounced back to $0.40 after dropping to $0.36 the previous day.
This rebound coincided with Bitcoin (BTC) and most altcoins attempting to regain lost ground. Bitcoin reached $98,500 after hitting a low of $94,200 earlier in the week. Similarly, altcoins like Ethereum and Solana also saw slight recoveries.
Cryptocurrency analysts remain optimistic about Dogecoin, highlighting that it is still in a strong bullish trend. In a post on the X platform, Scofield, a popular crypto analyst with over 80,000 followers, pointed out that it was the last opportunity to purchase the coin before a significant rally. He emphasized that Dogecoin was sitting at a crucial support level on the four-hour chart.
Meanwhile, another prominent analyst, Ali Martinez, predicted that Dogecoin’s price could potentially reach $3 during this bullish cycle. In the event of highly favorable market conditions, he forecasted a potential surge to $18, which would represent a 4,400% increase.
Dogecoin has a history of experiencing dramatic price movements. For example, between its lowest point in January and May 2021, it surged by over 27,300%.
A key factor that could influence Dogecoin’s price is Bitcoin’s rebound and a breakthrough above its all-time high. If Bitcoin achieves this, it is likely to trigger a strong bullish breakout for DOGE.
Another potential driver is the expected crypto-friendly stance of the incoming Donald Trump administration. In the long term, the approval of a spot DOGE ETF could also generate increased demand for the token.
To reach $1, Dogecoin price needs to surpass the important resistance level at $0.4843, which is its year-to-date high. If this occurs, the next significant price level to monitor on its path to $1 will be $0.7500, its all-time high.
The weekly chart reveals that DOGE has been in a strong uptrend for several weeks, rising consecutively for eight weeks. This explains the temporary pause in its upward movement this week, as assets often experience pullbacks after extended gains.
Dogecoin price remains above the 50-week and 200-week moving averages, as well as the 50% Fibonacci Retracement level. It has also reached the ultimate resistance of the Murrey Math Lines.