Dogecoin (DOGE) has recently seen a major rebound from its critical accumulation zone, which a cryptocurrency analyst believes could set the stage for a stronger rally to $1 or above. Then comes a huge price enhance months of constant declinesduring which the dog meme coin failed to break the resistance caused by volatility and lasting market sales.

Dogecoin bounces 46% from the accumulation zone

Crypto market analyst Patel has released a fresh assessment of Dogecoin’s price behavior, indicating: key accumulation zone which caused a noticeable revival in the meme market. The analyst highlighted a significant change in Dogecoin’s price momentum and direction after rising around 46.94% from the sturdy support area and accumulation zone near $0.0375. The jump included a recent intraday gain of 8.57%, which pushed DOGE towards $0.113.

Crypto Patel said short-term investors may consider taking profits at the current high level. On the other hand, long-term investors are encouraged to view any drop from $0.113 to the $0.06 to $0.08 range as gradual. chance to accumulatewith expectations that meme coin’s next growth targets will reach $1 and $2.

The accumulation zone, marked in green on the analyst’s chart, represents a multi-year base that has been in place since previous cycles, with Dogecoin price treating it as support in higher time frames. Crypto Patel noted that DOGE had previously seen two major breakouts before reaching this zone. The first breakout occurred at the lower boundary of a descending canal between points 1 and 2 on the chart, followed by a second breakout from a later consolidation phase, which caused prices to enhance.

Following these moves, Dogecoin price pulled back and retested key levels before settling in its current accumulation zone. The meme coin is now perceptible dynamics increasing again after months of declines, with price action indicating a move to higher levels.

Fibonacci extensions and forecasts of measured moves further point to the likelihood of a significant upside, with one target on the chart pointing to $0.567, representing a potential upside of 409%. Another target suggests an even higher price enhance towards $2 and perhaps $4 if the upward momentum continues.

Although Dogecoin rose to $0.11, its price has since dropped up to USD 0.10. CoinMarketCap’s daily chart shows that DOGE’s price has fallen by over 11% in the last 24 hours.

The analyst highlights the possible level of invalidation

On his Crypto chart, Patel highlighted the potential invalidation area, warning that if it was breached, Dogecoin could pull back and resume its previous downward trend. The invalidation level is located near $0.056, just below the accumulation zone. The analyst previously noted that despite the recent recovery, DOGE’s price could still return to the $0.06 range, suggesting that a weekly close below this area could weaken the meme coin’s stock broader macro-bullish structure.

Featured image from Pixabay, chart from Tradingview.com