TL;DR

Bullish signals suggest a Dogecoin revival, with a breakout above $0.29124 potentially pushing the price to $0.50-$0.60.

However, concerns arise as DOGEs network activity and futures trading volume plummet, with warnings of a potential crash to $0.06 if the valuation drops below $0.19.

Can the Bulls Retake Control?

The past few days have been devastating for the cryptocurrency market, with the prices of numerous leading digital assets crashing by double digits. One of the worst affected was Dogecoin (DOGE), whose valuation is down almost 20% on a weekly scale and currently trades at roughly $0.21.

DOGE Price, Source: CoinGecko Some analysts, though, believe the bearish trend might soon be over. The popular X user Ali Martinez claimed that the meme coin appears ready for a rebound as the TD Sequential indicator flashes a buy signal on the daily chart. 

Rose Premium Signals also outlined a bullish forecast. The industry participant assumed that DOGE approaches a key reversal zone, claiming that a breakout above $0.29124 could confirm a rally toward new peaks. The X user thinks the long-term targets sit at around $0.50-$0.60, with the potential for further upside. 

If momentum continues, Dogecoin could reclaim its meme coin throne and push toward higher levels, they concluded.

The Bearish Scenario

Contrary to his optimistic prediction, Martinez recently presented some worrying data involving the biggest meme coin in terms of market capitalization. He estimated that Dogecoins network activity has dwindled in the past few months, with new addresses dropping from almost 1.3 million in November 2024 to just 30,815 as of today (February 27).

Additionally, DOGEs total futures trading volume has tumbled from $58.2 billion in November last year to just $992 million on February 26.

These developments typically signal reduced user engagement, which could be interpreted as bad news from investors and hamper interest in the meme coin. 

Earlier this week, Martinez saw a probability of a DOGE price crash to as low as $0.06. He believes this could happen if the price plunges below $0.19. As mentioned above, the valuation plummeted substantially in the past few days but did not go below the depicted mark.