TL;DR

DOGE rebounded after a drop to a five-month low. Analysts are split: some warn of a potential 60% crash to $0.06, while others see signs of a bullish breakout ahead.

Whats Next for DOGE?

The worlds biggest meme coin in terms of market capitalization tanked to as low as $0.13 on April 7 amid the overall crypto bloodbath. In the past several hours, the bulls managed to reclaim some of the lost ground, and DOGE currently trades at roughly $0.15.

Despite the resurgence, some analysts envisioned a further slump in the near future. The X user Ali Martinez claimed Dogecoin broke out of an ascending parallel channel when crashing below $0.14. He thinks this could be followed by a 60% collapse to $0.06. 

Cantonese Cat stands in the bullish corner. They noted that DOGEs Relative Strength Index (RSI) recently dropped below 20, entering oversold territory. The technical indicator measures the speed and change of price movements, and ratios under 30 are typically considered buying opportunities. Conversely, anything above 70 is viewed as a precursor to a pullback. 

Charting Guy also gave their two cents. The analyst suggested that DOGE follows a price action observed in the fall of 2024, forecasting a spike to a new all-time high of $1.50 in the following months. 

Waiting for This Spark

One essential factor that could ignite a Dogecoin price upswing is the potential approval of a spot DOGE exchange-traded fund (ETF) in the United States. The product will provide investors a regulated option to gain exposure, cutting exchanges from the equation. This could increase the interest in Dogecoin and positively impact the price.

Bitwise and Grayscale are some of the well-known companies that have displayed intentions to launch such an investment vehicle. The approval chances before the end of 2025 (according to Polymarket) currently hover at around 70%. 

Another element that could fuel a price rally for Dogecoin is a renewed frenzy of the meme coin niche. The sector was among the highlights of the latest bull run and was full of tokens experiencing spectacular pumps in a short period of time. 

While its total market cap surpassed $120 billion towards the end of last year, the next several months presented a substantial decline. Currently, the capitalization stands at less than $45 billion, and it remains doubtful whether the figure will reach its peak levels soon.