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A notable market analyst predicts a potential reversal for Dogecoin based on the meme coin’s buying zone but advises focusing on smaller price targets first.
Dogecoin (DOGE) has experienced a clear short-term decline, with its price falling from roughly $0.25 on May 23 to just above $0.20. Despite this downward trend, technical analysts on TradingView present insights suggesting a possible reversal and significant gains.
Consolidation Phase and Key Support Zones
The recent price action shows Dogecoin moving sideways within a defined range. According to a TradingView account, labelled as Setupsfx_, this consolidation has made trading difficult, as the lack of a clear trend often results in uncertainty. The chart highlights phases such as distribution and accumulation, where selling pressure once dominated before buyers stepped in.
The analyst points out a descending trendline dating back to March last year, as DOGE dropped from the $0.22 high at the time. This trendline repeatedly capped upward price attempts, including around $0.14 in July.
Meanwhile, between June and October 2024, Dogecoin underwent an accumulation phase, eventually breaking out to peak near $0.46 in December on the back of the Trump-induced market-wide rally. Following that peak, prices declined, with DOGE now reaching the previous accumulation zone around $0.12.
Currently, Dogecoin trades just above a buying zone between $0.16 and $0.20. This level aligns above the 2024 accumulation period. The analyst expects a possible minor dip into this zone before a significant rebound. This support range could serve as a foundation for future upward movement.
When Dogecoin Can Reach $2
In his analysis, the market watcher forecasts a potential Dogecoin price surge to $2 by the end of this year following a breakout. From the current price around $0.20, DOGE would need to rise nearly 900% to claim $2.
However, the analyst advises caution, recommending traders focus on smaller, interim price targets. Reaching the $2 level may take several months or even years, according to the analyst.
Cup and Handle Pattern Suggests Further Upside
In addition to Setupsfx_’s analysis, another TradingView contributor, Aram Salimi, identifies a long-term Cup and Handle pattern on Dogecoin’s chart. This formation began around May 2021, when DOGE traded above $0.70 before gradually declining to roughly $0.05 in late 2022 and early 2023. The rounded base of the cup formed during this period, signaling a slow recovery as prices rose again.
By early 2025, Dogecoin returned to the $0.22–$0.25 range, forming the right side of the cup. Recently, the handle—a slight pullback from resistance—has completed. Analysts often view this pattern as a consolidation phase before a breakout. The price now tests resistance near $0.25, supported by increasing trading volume.
According to Salimi’s projection, a breakout above $0.25 could push Dogecoin toward $0.45 and $0.50. Longer-term targets based on this formation reach as high as $2.50, suggesting potential for a substantial price surge if the pattern confirms.