- Dogecoin dropped 38.69% in February and 17.37% in March, now trading around $0.1653.
- A bullish inverse head and shoulders pattern may push price past $0.1760 toward $0.20 resistance.
- Analysts note bullish divergence on 3-month chart, suggesting long-term rally despite recent weakness.
Dogecoin has struggled to find its footing since February. After a modest 4.28% gain in January 2025, the cryptocurrency took a sharp dive, losing 38.69% in February and another 17.37% in March. As it currently wrestles with bearish forces at $0.1653, some analysts warn that failing to hold above $0.16 could send it plummeting to $0.06.
Despite this gloomy outlook, a well-known market analyst, Trader Tardigrade, sees a potential reversal forming. He points to a bullish inverse head and shoulders pattern appearing on the 4-hour Dogecoin chart. If confirmed, this setup could help the meme coin reclaim its lost ground and push toward the once-solid $0.20 level, which now acts as resistance.
The inverse head and shoulders pattern is a well-known signal for a market turnaround. It consists of a lower dip (the head) between two smaller drops (the shoulders). The neckline connects the peaks between these dips, and a breakout above this line could confirm a trend reversal.
A Critical Breakout Level at $0.1760
Trader Tardigrade’s analysis suggests that Dogecoin’s left shoulder appeared when prices hit $0.1658 on March 29. The asset then formed the head when it dropped to $0.1601 on March 31. Most recently, on April 2, the right shoulder developed as the cryptocurrency slipped to $0.1677.
The neckline of this pattern sits at $0.1760. If Dogecoin can break through this level, a move to $0.20 could be within reach. Historically, this type of pattern forms after a prolonged downtrend and often hints at a price recovery.
A successful breakout above $0.1760 could push it toward a 20.99% gain, hitting the $0.20 mark. While this increase might seem modest, reclaiming $0.20 would be a psychological win for traders and a step toward a broader rally.
Dogecoin Eyes New All-Time Highs
While short-term charts indicate a possible rebound, another analyst on TradingView highlights a bullish divergence on Dogecoin’s 3-month chart. This means that while Dogecoin’s price has been forming higher lows, its RSI—a momentum indicator—has been trending downward. This mismatch is often a sign of an impending rally.
Though the analyst didn’t provide a specific price target, he stressed that Dogecoin holders should stay patient and not get swayed by short-term negative headlines. He encouraged them to maintain a long-term bullish outlook.
New all-time highs—don’t be fooled by the news,” he wrote.
With mixed signals in the market, Dogecoin faces a crucial test in the coming days. A confirmed breakout could lead to significant gains, while failure to hold above key levels might invite deeper losses.
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