Analyst: Dogecoin Still in Bullish Phase, Key Levels to Determine Its Future 

Dogecoin (DOGE) has experienced a significant price decline over the past month, mirroring broader market trends. This drop has fueled questions about its future direction in a market dominated by selling pressure. However, crypto analyst Trader Tardigrade recently offered a bullish outlook.

DOGE Forms Dragonfly Doji Pattern

In an X post, the analyst highlighted the formation of a Dragonfly Doji pattern on DOGE's daily chart. This pattern, typically appearing after a downward trend, is often interpreted as a bullish signal. It suggests that despite selling pressure, buyers are emerging, potentially signaling a price recovery. The pattern indicates a possible imminent price jump for the meme coin.

The analyst also cited the Mean Reversion theory, suggesting DOGE's current downturn is a retracement toward historical price averages. This theory posits that asset prices eventually revert to their mean. Therefore, despite the recent drop, DOGE could be poised for an upturn, potentially returning to higher price levels.

DOGE Price Update

Dogecoin has faced considerable selling pressure recently, with a 24.4% decline over the past month and a 7.8% drop in the last seven days. Currently trading at $0.1876, it experienced a 3.8% decrease in the past 24 hours. However, these figures also suggest the downtrend is weakening as buyers enter the market, hinting at a potential upswing as sentiment shifts bullish.

A key on-chain indicator supporting this bullish outlook is Open Interest (OI). Over the past 24 hours, DOGE's OI increased by 2.73% to $1.74 billion, reflecting growing trader interest and position creation. This surge suggests accumulation by traders and investors confident in DOGE's growth potential.

Continued buying pressure, particularly during market dips, could propel DOGE's price toward key resistance levels of $0.2050 and $0.2120. Reaching these levels would solidify a bullish trend.