Dogecoin Holds Key Trendline Against Analysts’ Forecast of 50% Rally
May 31, 2026
Dogecoin’s price is currently hovering around $0.10 as it approaches a crucial support level that has been influential in its price movements since March. The significance of this support area has not gone unnoticed, with multiple analysts highlighting its importance. While some analysts see potential for a recovery and further upward movement, others are cautious, indicating that the correction may not be fully resolved yet.
One trader, Tardigrade, pointed out that Dogecoin’s price has consistently bounced off a rising support trendline since March, with each bounce leading to a stronger uptrend. The daily chart shows DOGE trading near $0.10 after a pullback from a recent peak in May. The support trendline is now in close proximity to the current price, making it a critical level for determining the short-term direction of the token. A successful bounce from this level could see Dogecoin testing resistance levels at $0.106 to $0.110 and potentially breaking through to $0.12. However, a breakdown below the trendline could signal a weakening in the bullish structure, potentially leading to a retest of lower support levels around $0.09.
Another analyst, World Of Charts, highlighted the retesting of a trendline and horizontal support zone by Dogecoin’s price. A successful retest at these levels could set the stage for a bullish wave in the near future. The chart indicates that Dogecoin has broken above a descending resistance line and is now testing the breakout area, a critical moment that will determine the strength of the breakout. A bounce from the current zone could lead to a significant recovery, with a potential 50% bullish wave targeting $0.15 from the current price near $0.10.
Looking at shorter timeframes, Jaz shared a 4-hour chart showing Dogecoin building a base around $0.10 and potentially rising to retest resistance at $0.12 before extending towards the $0.20 to $0.21 range. The outlook remains speculative for now, contingent on Dogecoin defending its current support levels and generating increased trading volume. A breakthrough above $0.12 could pave the way for a stronger bullish case and attract momentum traders back into the market.
However, a wider perspective from analyst Alex using Elliott Wave theory suggests that Dogecoin may still be in the final Wave C of a larger ABC correction. The analysis indicates that Dogecoin completed a five-wave rally during the 2020-2021 cycle, followed by a corrective phase with waves A and B. Wave C could still be unfolding, potentially leading Dogecoin to revisit lows near $0.02 to $0.03 before establishing a long-term bottom. While the short-term outlook depends on buyers holding the rising support line, the longer-term Elliott Wave count warns of the possibility of a deeper correction if broader market conditions deteriorate.
