Dogecoin Price Returns To Key Local Peak: Is Another Major Uptrend On The Horizon?

Dogecoin’s price action in the past 24 hours has been characterized by a struggle to hold above the $0.20 price level. This struggle comes after Dogecoin broke below $0.20 at the end of February for the first time since November 2024.

From a technical perspective, this recent price crash aligns with a pattern that has historically preceded rallies for DOGE, with the meme coin revisiting its previous local peak.

Dogecoin Price Revisits Local Peaks Before Another Breakout

Dogecoin’s price crash to $0.20 could potentially initiate a bearish move, but technical analysis suggests otherwise. Trader Tardigrade, a crypto analyst, believes that Dogecoin’s current price action fits within a pattern that has historically led to major rallies on higher timeframes.

As noted by the analyst, Dogecoin’s price has retraced to around $0.22, which is a retest of its local peak after the rally in the first three months of 2024. This movement follows a larger correction from its December 2024 high of $0.475.

This isn’t the first time Dogecoin has revisited its previous local peak this cycle, as historical analysis shows that Dogecoin tends to revisit former peaks before entering a sustained rally. The current consolidation phase around $0.22 could last for several weeks before the next upward move.

Major Uptrend Coming Next?

The return to the $0.22 price zone indicates that Dogecoin may trade within this range for the next few months before another breakout. However, it may not take that long for Dogecoin to start the next rally. Trader Tardigrade predicts a potential rally with a price target above $0.8, surpassing Dogecoin’s current all-time high of $0.7316.

In a separate analysis, the same crypto analyst pointed out that Dogecoin’s 4-hour Relative Strength Index (RSI) had broken out of a descending trendline, indicating bullish momentum. Dogecoin is currently trading at $0.2062.