Dogecoin (DOGE), now priced at $0.169, is witnessing a potential comeback after recently falling sharply. The meme coin’s slight 1.45% 24-hour dip’s overall downtrend puts it at 20% lower than its recent highs. It has lately arrived at an important support line that usually leads to price trend reversals. Technical analysis indicates Dogecoin is readying itself for a rally, with possible short-term upside of more than 18%.

The digital asset has consistently bounced off this level — $0.164 — since April 2025. Each time Dogecoin has reached this level, it has quickly turned around price direction, providing Dogecoin investors with something to hope for. A textbook bullish divergence has formed in Dogecoin’s technical structure, suggesting an upcoming change in momentum.

Technical Indicators Suggest Bullish Momentum

Even though Dogecoin traded under its 200-day EMA, the technical indicators suggest that Dogecoin could make a bullish turn. Since then, the altcoin has tested the $0.164 support level three times, most recently in early April 2025. Each time, it has advanced back, demonstrating that this zone is resilient.

Further supporting the bullish outlook, the weaker trading volume on the recent price drop indicates that selling pressure remains weak. What’s really interesting is that downward momentum seems to be slowing. Combined with the bullish divergence, this suggests that Dogecoin may be setting up for a major trend reversal.

If Dogecoin can stay above its $0.164 support level, some analysts anticipate a return up to about $0.20 in the short term as a price target. This would be a great upside of over 18% from its current trading price.

Analyst Views and Target Zones

Analysts pointed to Dogecoin’s price history and current technical setup as inging the stage for a potentially massive rally. Another analyst has noticed a repeat pattern in Dogecoin’s price action, predicting that the meme coin has strong target area to go.

"Dogecoin is repeating its previous movement pattern… The target is now the $0.60 zone." - AMB Crypto (expert analyst)

Though such projections may seem optimistic, Dogecoin’s potential as a meme coin have some analysts projecting it will reach through a target range of $0.60. Although this target is further down the road, in the short term it’s all about breaking through that $0.20 barrier.

Market Sentiment and Future Outlook

Dogecoin’s capacity to hold above the $0.164 support line will be critical in defining its near-term course. Bullish technical signals along with prospective price action from further history make for an encouraging outlook for DOGE investors. Further, analyst expectations are driving this cautiously optimistic sentiment.

Beware, because just like all cryptocurrencies, Dogecoin is heavily affected by market volatility and outside influences. Investment proposals are speculative and unproven and investors are advised to do extensive research and be very careful in making investment decisions.