Dogecoin Preparing for a Small Retest-Here’s Where it May Reach After Rebounding From $0.385

Dogecoin (DOGE) Price Analysis: Bullish Momentum Continues, Pullback Possible

The recent weeks have been incredibly bullish for the cryptocurrency market, with Bitcoin leading the charge. Dogecoin (DOGE), in particular, has seen significant gains, awakening from a period of consolidation and surpassing its resistance levels. However, as the market shows signs of weakness, the possibility of a bearish correction has emerged, which could provide an entry point.

Recent Rally and Market Sentiment

Dogecoin's 200% surge has propelled it back into the top 7 cryptocurrencies, preventing it from falling out of the top 10. While bearish pressure is present, market sentiment remains optimistic. Currently, the DOGE price is consolidating around $0.42, but a slight dip below $0.4 is possible, offering a potential opportunity for investors. However, the long-term target of $1 remains active.

Short-Term Trend Analysis

Although the long-term outlook suggests a pullback may be imminent, short-term indicators point to a possible rebound. The daily chart shows that the DOGE price is approaching the upper boundary of a bull flag, indicating consolidation within a pennant below $0.45. The Moving Average Convergence Divergence (MACD) indicates a potential pullback, with bearish crossover and declining buying volume. However, the On-Balance Volume (OBV) also shows a bearish divergence, supporting the bearish theory.

Future Outlook

Despite these bearish signals, it is important to note that the Dogecoin price is likely to exhibit a catapult-like action, surging above $0.5 in the near future. The liquidation heatmap of DOGE on Binance reveals strong support around $0.397, where over $1.58 billion in longs have been accumulated. A drop below $0.4 could trigger a rebound from these levels. Additionally, no significant short positions have been established above $0.45, suggesting a breakout is possible, as market sentiment remains bullish.