Dogecoin has been a bit mischievous these days. The upward momentum at the beginning of the week has gradually weakened, with intraday declines reaching 5.5%, bringing the price back to recent lows. However, many analysts believe this may not be a bad sign—if DOGE can hold steady at this level, a short- to medium-term rebound could be on the horizon.

Key support levels are once again under scrutiny. On Thursday, Dogecoin followed the broader market correction, with the price falling into the $0.136 to $0.138 range. Since the adjustment that began in Q4 of last year, DOGE has fallen nearly 50% from its peak, oscillating between $0.130 and $0.155 in recent weeks.

Trader Tardigrade, a trading analyst, highlighted an important detail: DOGE is currently testing an upward trendline that has been in place since 2022. Interestingly, each time the price tests this line, a substantial rally follows. Historical data shows—after the first test, an 87% increase within 8 weeks; after the second, over 210% in 10 weeks; and by Q3 2024, a 442% surge within 14 weeks, reaching an annual high of $0.48.

The analyst's judgment is that if this retest can hold the trendline, DOGE may surge towards $1, with a potential medium-term increase of up to 610%.

On the technical side, some positive signals have also emerged. DOGE’s daily MACD has already formed a bullish crossover, which usually indicates a possible trend reversal from downward to upward. Interestingly, similar signals appeared in Q2 and Q3 of this year, both leading to phase highs. Other market observers are also looking for structural evidence supporting short-term bullishness, such as chart patterns.