Dogecoin Price Poised for Rebound as It Nears Final Capitulation, Says Crypto Analyst
Key Highlights:
- Dogecoin has fallen over 45% from its 2024 peak.
- A crypto analyst suggests it has entered the final capitulation phase.
- A strong rebound is anticipated in the near future.
Dogecoin Hits Lowest Level Since November Amid Market Sell-Off
Dogecoin’s price plummeted on Monday, reaching its lowest level since November last year, as part of a broader downturn in the cryptocurrency and stock markets. Despite the continued decline, some analysts believe that the coin may have hit its bottom, setting the stage for a potential surge.
Analyst Predicts Dogecoin Is in Its “Final Capitulation” Phase
Dogecoin has dropped from a high of $0.4835 on December 8 to its current price of $0.2572, marking a nearly 50% decline. In a recent post on X (formerly Twitter), crypto analyst Trader Tardigrade, who has a following of over 70,000, identified Dogecoin as being in the final phase of capitulation. 
Analyzing a three-day price chart, he pointed out a similar capitulation in August when DOGE fell to $0.0808. Based on historical trends, he predicts that Dogecoin could rally towards a key resistance level of $0.85, a potential 230% increase from its current price. 
In another analysis, he highlighted past instances where Dogecoin experienced sharp declines before staging massive rallies. For example, the coin dropped by 60% in 2016 before surging over 9,221% in the following years. Similarly, after a 56% dip in 2020, DOGE skyrocketed by more than 30,000% in 2021.
Technical Indicators Signal Potential Reversal for DOGE
Dogecoin’s price peaked at $0.4832 in December before plunging to a low of $0.2017 on Monday as market sentiment weakened. It briefly fell below the critical support level of $0.2295, which was its highest swing in March last year.
However, the coin is still hovering above the 50-week Exponential Moving Average (EMA), suggesting that bullish momentum remains intact. Additionally, DOGE has reached a major support and resistance pivot point on the Murrey Math Lines at $0.2017, a level where sharp reversals often occur.
Technical indicators also show that Dogecoin has formed a falling wedge pattern, a historically bullish signal. The appearance of a small hammer pattern on the chart further supports the possibility of an upcoming price rebound. 
Dogecoin Price Outlook: Key Levels to Watch
If Dogecoin continues its recovery, the next resistance target is set at $0.400, which is approximately 53% above its current value.
However, if the price falls below the key support level of $0.2017, the bullish outlook could be invalidated. A further decline could push DOGE down to the next strong support level at $0.09766.
With market sentiment remaining volatile, traders will closely watch for signs of a breakout in the coming weeks.
