"Bought again after hitting $0.095"… Dogecoin: Bottom Signal or 'Trap Rebound'?

▲ Dogecoin (DOGE)

As Dogecoin (DOGE) reached a long-term key support level, news that a renowned analyst began re-accumulating it has garnered significant market attention.

According to crypto 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 area that has acted as both support and resistance multiple times in the past.

According to Kevin's analysis, Dogecoin's correction, which followed its peak of approximately $0.49 recorded in December 2024, is nearing its end. The $0.095 level, in particular, has historically formed bottoms and led to upward reversals in previous cycles, and is recognized as a psychological support level among market participants. The fact that this range has been repeatedly tested from 2022 to early 2024 also enhances its reliability.

However, he emphasized that the current accumulation strategy heavily depends on Bitcoin's trend. If Bitcoin falls further, he plans to continue staggered buying down to the $0.08 to $0.05 range. At the same time, he characterized this rebound as a short-term counter-trend rally rather than a full trend reversal, advising a cautious approach.

From a technical perspective, for Dogecoin to definitively transition into a bull market, it must first reclaim the $0.11 level. This area contains the 21-week exponential moving average and the 20-week simple moving average, acting as significant resistance. Subsequently, breaking through the $0.136 and $0.161 resistance levels, respectively, would be necessary for a meaningful upward trend to form.

Meanwhile, on the monthly chart, bearish signals still persist, including the first-ever close below the 100 exponential moving average. Consequently, 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 definitive bottom of this cycle is likely to form between July and October. Until then, he suggests that a selective accumulation strategy, focusing on Bitcoin's trend rather than aggressive chase buying, remains valid. Investor attention is now 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.*