Dogecoin price forecast (DOGE): Will it return to the local peak of $0.47?

Over the past month, the price of Dogecoin (DOGE) has experienced a slight decline, falling more than 4% while the market has been dominated by bearish factors. This reflects the overall trend of major cryptocurrencies, including Bitcoin, as significant market corrections have occurred since DOGE reached a local peak of 0.249 USD on May 22. However, recent analyses from renowned analyst Ali Martinez indicate that there are still some potential support factors for the DOGE market, while forecasting the possibility of a bounce back in price in the future.

DOGE aims for the level of $0.47

Recently, Ali Martinez shared detailed information about the Dogecoin market, especially the key factors for this altcoin to bounce back to an uptrend. Using the DOGE/USDT chart on the daily time frame, he pointed out that a bullish trend line extending from 2023 has acted as a strong support zone, preventing further bearish movements and maintaining recovery potential.

Currently, Dogecoin is trading close to this trend line, with a price of around 0.15 USD. Martinez believes that bullish speculators need to protect this price area to maintain a positive outlook for the DOGE market. Protecting this support area will not only create a bounce back momentum but also help prevent a complete collapse and a shift to a bearish market.

It is noteworthy that each time Dogecoin tests this trend line, it creates a strong bounce back, followed by a significant bullish cycle. Previous price increases from 0.059 USD to 0.21 USD ( gained about 255%) during the 2023-2024 period and from 0.095 USD to 0.47 USD ( gained about 395%) in 2024 show a positive pattern. However, this analyst also suggests a cautious price target: if DOGE can hold the support level of 0.15 USD, the price may quickly bounce back and reach 0.22 USD.

Under the influence of strong bullish factors such as previous growth spurts, DOGE investors can expect the price to continue its upward trend and potentially reach 0.24 USD in the near future. In the best-case scenario, DOGE could bounce back to the local peak at 0.47 USD, a high price previously recorded.

However, at the time of writing, Dogecoin is trading around 0.163 USD, falling slightly by 0.5% on the daily chart and 0.7% on the weekly chart. Meanwhile, the trading volume of DOGE has decreased sharply by 56.81%, indicating a significant decline in market interest towards this meme coin.

According to data from the price prediction site Coincodex, the general sentiment towards Dogecoin is currently bearish. This is reflected in the Fear & Greed Index, which is currently at 66, indicating significant greed in the market, despite the somewhat gloomy market conditions. Analysts forecast that DOGE may fall slightly to 0.16 USD in the next 5 days and could reach around 0.193 USD within the next month.

Price forecast for DOGE | Source: CoincodexLong-term forecasts suggest that the growth of DOGE in the near future may not be very strong, with a price target of around 0.197 USD in the next three months and 0.169 USD in six months. This indicates that the DOGE market still has many uncertainties, but there are still signs of potential bounce back in the near future if the price can maintain key support levels.

Although DOGE has experienced a significant bearish trend over the past month, technical analysis and support from macro factors indicate that this meme coin still has the potential to bounce back. If investors can protect key support levels, especially around the 0.15 USD mark, Dogecoin could soon return to an uptrend, targeting the price level of 0.22 USD and even reclaiming the local peak of 0.47 USD in the future.

However, investors should be cautious of the volatility of the cryptocurrency market, and consider influencing factors such as overall market sentiment, trading volume, and signals from technical analysis before making investment decisions.

Annie