Dogecoin has been encountering challenges in the market recently, struggling to break through key resistance levels. As of now, the cryptocurrency is trading at $0.1552, reflecting a minor 0.37% decline in the last 24 hours and a more substantial 2.06% drop over the past seven days. Dogecoin has attempted to push past the $0.16 resistance several times but failed, dropping as low as $0.151 before recovering slightly. Despite this volatility, several analysts believe that Dogecoin could soon see a significant upward movement following a potential short-term dip.

One noteworthy analysis shared by SwallowAcademy on TradingView suggests that Dogecoin might experience a further decline before a major surge. The chart, which highlights Dogecoin’s price action against Tether (USDT) on a daily timeframe, shows the significant volatility Dogecoin has experienced in the past. Notably, early 2024 saw a sharp upward movement, followed by a significant decline after reaching a peak near $0.23. Later in 2024, the price fell to around $0.09, where it found solid support before rebounding to over $0.45.

SwallowAcademy anticipates a similar scenario may unfold in 2025. According to the analysis, Dogecoin could drop an additional 40%, retesting the $0.09 support level. Once this level is retested, the analyst predicts a 400% surge, pushing Dogecoin’s price up to $0.45. The analyst emphasizes that the market may need a further dip to solidify the support zone before such a dramatic rally occurs. At present, Dogecoin is trading above $0.15, and the analyst is waiting for a dip to the $0.09 level before anticipating the potential surge.

Another factor influencing the outlook for Dogecoin is a pattern highlighted by another analyst, Trader Tardigrade. This expert pointed out that Dogecoin experienced its first false breakdown since December 2024. Typically, the coin has followed a downtrend characterized by lower highs and lower lows, a pattern of bearish market sentiment. However, after dipping to $0.13 on April 7, the price rebounded briefly but was unable to sustain its momentum and quickly dropped again. This event has been interpreted as a “false breakdown,” which suggests that the downward trend may not persist much longer.

Trader Tardigrade believes this could be an early indicator of a bullish reversal. The price has remained above the support line for several days, signaling that Dogecoin might be preparing for an upward move. Based on this analysis, the next potential target for Dogecoin could be $0.42, which would indicate a moderate recovery from its current levels. The “false break” suggests that the bearish momentum might be waning, with bullish sentiment beginning to take over.

In addition to the technical analysis, data from IntoTheBlock has shed light on Dogecoin’s user activity, offering a deeper understanding of the forces driving its price movements. The data shows that Dogecoin may face short-term pressure due to shifting trends among various categories of holders. Specifically, long-term holders (those holding for one year or more) have decreased by 2.67% over the past month. Meanwhile, the number of short-term traders (those holding for less than a month) has increased by 107.45%, indicating growing speculative interest in Dogecoin.

This influx of short-term traders might contribute to increased volatility and price fluctuations in the near term. However, the long-term outlook appears more promising. The data indicates a steady rise in large holder inflows, suggesting that significant investors are accumulating Dogecoin. Over the past seven days, large holder inflows increased by 5.33%, followed by a sharp 323.86% increase in the last 30 days. Notably, there was an impressive 3,722% increase in large holder inflows over the past 90 days, further highlighting growing investor interest in Dogecoin and suggesting that its long-term prospects remain favorable.

In conclusion, while Dogecoin has faced some short-term hurdles, the technical analysis and data suggest that it may be poised for a strong recovery. Investors are keeping an eye on key support levels and chart patterns, with some predicting a 400% surge once the price stabilizes and finds solid footing at the $0.09 level.