Dogecoin Moves Into Demand Zone After 10% Fallout – Is A Bounce Coming?

According to a new technical analysis by DD Trading On X (former Twitter), Dogecoin (DOGE) has just moved into a key demand zone after experiencing a steep 10% drop from former highs. The analyst suggests that the meme coin is poised for a short-term recovery to new levels if the daily price low holds. 

Dogecoin Eyes Rebound After Entering Demand Zone

Recent price action saw Dogecoin establish range lows, trigger a liquidity sweep, and tap into a high-demand zone, where buyers are known to step in heavily. After touching this demand zone, Dogecoin broke its short-term bearish structure, creating a higher high. This move swept out weak hands before reversing upward. 

DD Trading revealed that the subsequent reversal in the Dogecoin price had led to the formation of a statistically strong daily low. The cryptocurrency also broke a lower time frame structure, shifting from a downtrend to an upward trend, suggesting short-term bullishness. 

Despite this, the larger market structure remains neutral-bearish unless higher resistance breaks. Currently, the Dogecoin price is yet to breach resistance levels near $0.235-$0.24, where a significant liquidity pool, marked as “$$$” on the chart, is likely to attract sellers or trigger further buying pressure. This is near the $0.23 level, where Dogecoin previously got rejected. 

The Statistical panels at the bottom of the chart provide insights into the likely price behavior based on historical patterns. According to the data, there is a low probability, around 16.5%, that the current daily low will be revisited or broken again, increasing the odds of a bullish move. 

Additionally, the chances of Dogecoin forming a new daily high later are high. Historical data shows that in approximately 88.6% of similar cases, a new high forms. This supports the expectation that a price bounce is imminent. 

Analyst Predicts Dogecoin Price Rebound To $0.95

Expanding further on Dogecoin’s bullish outlook, Bitcoinsensus has shared a fresh analysis predicting that the meme coin is gearing up for an explosive rally to $0.95. According to the new chart, Dogecoin has been following a highly consistent and powerful Bull Flag pattern on the weekly time frame. 

Each Bull Flag cycle consists of a strong upward impulse followed by a downward consolidation, after which the price breaks out to new highs. The first breakout sparked a 90% rally, the second led to a 215% surge, and a massive 440% spike occurred after the third. 

Now, Dogecoin appears to be completing its fourth Bull Flag pattern and has just begun to break out of its latest consolidation phase. If the historical trend continues, Bitcoinsensus predicts a potential price target of $0.95, representing a 352% increase from its current market value of $0.21. 

Featured image from Unsplash, chart from TradingView