Dogecoin Price: Rebound or Bust?

Dogecoin (DOGE) experienced a 10% price increase in the last 24 hours, leading investors to speculate about a potential long-term rally. While this short-term gain is positive, DOGE remains 80% below its all-time high. One analyst believes a rebound is imminent, but is it truly the bottom?

Dogecoin's Potential for a New ATH

Following a lackluster week, Dogecoin's price surged by 10.30% in a single day. This resurgence is fueling optimism about DOGE reaching a new all-time high (ATH). Cryptocurrency analyst Master Kenobi predicted on X that DOGE has bottomed out and is poised for a significant rally, potentially exceeding $0.73 in the coming months and pushing towards $1. This would surpass its previous ATH set in 2021.

According to Master Kenobi, "It’s only upward from here," with a new ATH predicted by early June.

Despite its current price being significantly below its ATH, Dogecoin has positive factors. A Dogecoin ETP by 21Shares and House of Doge is under development, potentially driving prices higher. Furthermore, the recent reports of Elon Musk’s reduced involvement haven’t derailed DOGE, suggesting it may have reached its bottom.

Challenges to a Dogecoin Price Rebound

While a Dogecoin price rally is anticipated, significant hurdles remain. Whale dumping of 1.3 billion DOGE has created sell-pressure concerns. Transaction counts have also dropped by 94% in the last month, signaling reduced demand for the memecoin. Moreover, Bitcoin's price fluctuations often negatively affect DOGE, and broader macroeconomic uncertainties, including retaliatory tariffs announced by China and the EU against the US, add to the instability.

For DOGE to reach a new all-time high, it must navigate these unfavorable fundamentals and on-chain data.

Disclaimer: This analysis includes the author's personal opinion and is subject to market conditions. Conduct thorough research before investing in cryptocurrencies. Neither the author nor Codeum is responsible for personal financial losses.