Dogecoin, a crypto token founded by Jackson Palmer and Billy Markus about seven years ago, surged as much as 30% after Coinbase listed it on its exchange. The crypto token, which has been championed by Tesla’s Elon Musk, with the famous slogan, “To the Moon”, traded at around $0.42 after listing.

A spot check of the cryptocurrency shows that it was trading at $0.226 as of Monday June 21. It is worth noting that the digital token once traded at a record $0.688 on May 7 this year.

One question that crypto enthusiasts of Musk’s favorite crypto have been asking is: Will Dogecoin recover its previous bullish run after the Coinbase listing, to hit previous highs and break to the upside?

Dogecoin – A Technical Outlook

Dogecoin has been on a bearish trend since the jump it recorded after listing at the beginning of the month. It has also trended down from its record high.

Currently, DOGE/USD seems to be aiming for the 0.075 support, after breaking below a minor support/event area at around the 0.3032 level.

Traders should watch the price level between $0.176 and $0.192, as it has acted as a minor support before. Prices are currently contained within a descending upper trendline and a support line, forming a triangle chart pattern.

The closing of the candlestick at this level should give a clue as to whether Dogecoin will break further below to the $0.075 level or regain new bullish momentum.

Trade Idea Plus Key Levels to Watch

Our recommendation tilts more towards a buy, rather than a sell trade, amid the bearish momentum of Dogecoin.

I would consider buying the current dip in Dogecoin, but this needs confirmation; either a break above the current trendline or the formation of a buy signal at around the $0.176 to $0.192 levels.

Alternative: Short-term trades could be taken to the downside after a sufficient break below the $0.176 level, targeting a price of $0.075.

Why a Buy Trade?

We recommend a buy trade because virtually all cryptocurrencies have shown more bullish moves and it’s reasonable to expect that Dogecoin is not out of the pack.

We consider the recent bearish turn of Dogecoin to be connected to the larger declines in cryptocurrencies. The fall has happened on the back of numerous criticisms, especially on mining activities and negative comments by enthusiasts like Elon Musk.

Once the market noise clears and investors resume their faith in cryptos, we expect a bullish momentum across the board, including Dogecoin. In fact, the current dip in Dogecoin should be a perfect opportunity for buyers to enter after confirmations of a change of trend.

DOGE Compared to Market Leader Bitcoin

Similar to the world’s largest cryptocurrency Bitcoin, Dogecoin has shown less power to the upside recently, after hitting a record high of about $0.688.

Bitcoin is currently trading at around the $32,000 level, about half of its April record of more than $64,000. Dogecoin and Bitcoin seem to be following a similar path, as they are trading about midway to their previous record highs, following crypto crackdown rhetoric.

What Next for Doge?

Looking forward, the crypto industry will be keen on updates regarding the regulation of digital tokens.

Key areas, such as the development of sustainable mining operations, could reignite market optimism and allow a swift bullish takeoff.

With Dogecoin now on one of the leading exchanges, Coinbase, the boosted reputation that comes with listing could enable it to reach the previous record and potentially even surpass it.

What else? The volume of Dogecoin in circulation is expected to increase by 4.1% in 2021, according to Motley Fool. The amount is expected to reduce to just 3.9% in 2022, and 3.5% by 2025, and it is only expected to hit 1.9% by 2048.

With reduced coins in circulation, this could cause Dogecoin to increase in value. Investors who focus on the long-term can use this analogy to gauge the potential of investing in Dogecoin. Good Luck!