Dogecoin has dropped by more than 60% from its December high. But several key indicators suggest DOGE might be ready to start spiking again.
When everyone in crypto is running for the exits, that’s often the best time to start looking for how to buy. According to crypto analyst Ali, that’s exactly what’s happening with Dogecoin right now.
Ali pointed out on X that investor sentiment around Dogecoin is at its most negative in over a year. But here’s the thing about crypto markets – extreme fear has historically been the breeding ground for major price reversals.
The DOGE token has repeatedly shown that when most traders are panicking, smart money starts positioning for a comeback. The current sentiment could be signaling a prime contrarian opportunity.
What you'll learn 👉
Technical Indicators Flash Buy Signal
Ali’s technical analysis shows the TD Sequential indicator has flashed a buy signal on Dogecoin’s daily chart. The indicator has just completed a nine-candle sequence (marked by a red “9” on the chart) that typically signals when a downtrend is running out of steam.
Looking at the Dogecoin/USDT, the March 11 candle is particularly telling. After a series of heavy selling days, buyers finally stepped in. The long lower wick on this candle shows sellers tried to push prices down further, but buyers fought back hard – a sign that DOGE might have found its floor.
For a definite breakout, DOGE needs to break through the $0.163 resistance level. If it manages to jump over that, we could see momentum accelerate quickly as more buyers gain confidence in the Dogecoin token’s recovery.
Possible Long-term Target of $5
While short-term bounces are nice. Historical pattern suggest DOGE could see a spike to $5
@CryptoELlTES has identified a recurring formation in DOGE price movements – bullish ascending triangles or pennant patterns that have preceded major rallies in the past. These patterns show periods where price compresses like a spring before exploding upward.
The current chart suggests Dogecoin is coiling in another one of these formations. Based on previous breakouts, @CryptoELlTES has suggested a long-term target as high as $5 for the meme coin.
Is $5 Dogecoin realistic? It would certainly require a massive leap from current levels and would catapult Dogecoin market cap to higher numbers. Getting there would mean pushing past the previous all-time high around $0.73, which is no small feat.
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That said, Dogecoin has never played by conventional rules. Its price movements have been heavily influenced by community enthusiasm, celebrity endorsements, and its unique position as the original meme coin. What seems impossible in traditional markets has often proven achievable for DOGE.
For now, Dogecoin holders can take comfort in the converging signals suggesting the worst might be over. The extreme negative sentiment combined with promising technical indicators creates a backdrop where surprises tend to happen to the upside rather than the downside.
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