Experts explain the reasons behind the anticipated Dogecoin price recovery

On December 11, the price of Dogecoin experienced a slight recovery as the recent sell-off in the cryptocurrency market eased and traders took advantage of the dip.

Dogecoin, the largest meme coin in the crypto industry, rebounded to $0.40 after dropping to $0.36 the previous day.

This recovery coincided with Bitcoin and other altcoins attempting to regain their footing. Bitcoin rose to $98,500 after hitting a low of $94,200 earlier in the week. Similarly, altcoins like Ethereum and Solana also saw slight recoveries.

Cryptocurrency analysts remain optimistic about Dogecoin, stating that it is still in a strong bull run. In a post, popular crypto analyst Scofield, who has over 80,000 followers, pointed out that it was the last opportunity to buy the coin before a significant rally. He highlighted that it was currently at a key support level on the four-hour chart.

Another prominent analyst, Ali Martinez, predicted that Dogecoin’s price could potentially reach $3 during this bullish cycle. In highly favorable market conditions, he forecasted a potential surge to $18, representing a 4,400% increase.

Dogecoin has a history of experiencing dramatic price movements. For example, it surged over 27,300% between its lowest point in January and May 2021.

A key factor that could influence Dogecoin’s price is Bitcoin’s rebound and surpassing its all-time high. If Bitcoin achieves this, it is likely to trigger a strong bullish breakout for Dogecoin.

Another potential driver is the upcoming administration of Donald Trump, which is expected to adopt a crypto-friendly stance. In the long term, the approval of a spot Dogecoin exchange-traded fund (ETF) could also lead to increased demand for the token.

To reach $1, Dogecoin’s price needs to surpass the key resistance point at $0.4843, which is its year-to-date high. If this occurs, the next significant price level to watch on its path to $1 will be $0.7500, its all-time high.

The weekly chart shows that Dogecoin has been on a strong upward trend for the past few weeks, rising for eight consecutive weeks. This explains its temporary pause this week, as assets often experience pullbacks after extended gains.

Dogecoin’s price remains above the 50-week and 200-week moving averages and the 50% Fibonacci Retracement level. It has also reached the ultimate resistance of the Murrey Math Lines.