Dogecoin’s Double Bottom Pattern Suggests Potential Rebound Towards $0.48

Dogecoin (DOGE) appears to be making a recovery after experiencing a tumultuous period, as technical indicators suggest a potential rebound that is generating interest from traders and cryptocurrency enthusiasts globally.

Following a period of volatility in October, DOGE has stabilized around the critical support level of $0.189, forming a higher low and indicating that the worst of the recent market downturn may be behind us. This stabilization has led analysts to speculate that a short-term rally could be on the horizon, with a possible return to previous highs around $0.48.

Analyst Trader Tardigrade noted the formation of a potential double bottom on Dogecoin’s 3-day chart near $0.17, signaling a potential reversal towards $0.48. This classic bullish reversal setup suggests that buyers are starting to reenter the market gradually.

Moreover, hidden bullish divergence signals underlying strength in DOGE, as evidenced by indicators like the Relative Strength Index (RSI) and stochastic RSI. These signals imply that the price may continue to move upward despite minor setbacks, with historical tendencies showing that Dogecoin could see short-term rallies ranging from 8-12% when these technical signals align.

The stabilization of Dogecoin mirrors broader improvements in the cryptocurrency market, with Bitcoin showing resilience and various altcoins, including DOGE, demonstrating early signs of accumulation. The recent reduction in price volatility and tightening of daily price movements often precede significant market movements in either direction.

While the question of whether Dogecoin will reach $1 remains unanswered in the short term, the current technical outlook is cautiously bullish, with a clear path towards $0.48 if the current patterns hold. Trader Tardigrade highlights that while Dogecoin’s double bottom formation is not yet complete, it presents a compelling scenario for a potential price rebound.

Overall market sentiment remains positive, with momentum indicators suggesting a quiet return of buying pressure, setting the stage for a possible rally in the coming weeks. Dogecoin’s technical setup, combined with the $0.189 support level and bullish chart signals, indicates a potential rebound towards $0.48, attracting renewed interest from traders and investors.

At present, Dogecoin is trading around $0.19, showing a 0.35% increase in the last 24 hours. With positive momentum indicators and improving market conditions, Dogecoin is positioning itself for a cautious yet promising uptrend, making it a coin to watch closely in the late stages of 2025.