"Bought again after hitting $0.095"... Dogecoin, a bottom signal or a 'trap rebound'?

▲ Dogecoin (DOGE)

As Dogecoin (DOGE) reached a long-term key support level, news that a famous analyst has started re-accumulating has drawn market attention.

According to cryptocurrency media outlet NewsBTC on April 21 (local time), analyst Kevin started buying Dogecoin again after it dropped to around the $0.095 level. He explained that this price range aligns with the target price of a bear flag pattern on the weekly chart and is a key zone that has acted as both support and resistance multiple times in the past.

According to Kevin's analysis, the correction in Dogecoin that followed its peak of around $0.49 recorded in December 2024 is nearing its end. In particular, the $0.095 level is a point that formed a bottom and led to an upward reversal in past cycles, and it is recognized as a psychological support line among market participants. The fact that this zone has been repeatedly tested from 2022 to early 2024 also increases its reliability.

However, he emphasized that the current accumulation strategy heavily depends on Bitcoin's trend. If Bitcoin experiences further decline, he plans to continue dollar-cost averaging buys down to the $0.08 to $0.05 range. At the same time, he characterized this rebound not as a full trend reversal but as a short-term counter-trend rally, advising a cautious approach.

From a technical perspective, for Dogecoin to truly transition into a strong bull market, recovery of the $0.11 level must precede. This zone contains the 21-week exponential moving average and the 20-week simple moving average, acting as important resistance. After that, a meaningful upward trend can only be formed by breaking through the $0.136 and $0.161 resistance levels in succession.

Meanwhile, on the monthly chart, bearish signals still remain, such as closing below the 100 exponential moving average for the first time ever. Accordingly, the market is said to have entered a phase of seeking direction between a short-term rebound and a medium-to-long-term downtrend.

Kevin predicts that the true bottom of this cycle is likely to form between July and October. Until then, he suggests that a selective accumulation strategy, rather than aggressive chase buying, while monitoring Bitcoin's trend, remains valid. Investors' attention is focused on whether Dogecoin can regain upward momentum based on the $0.095 support level.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*