A notable analyst identifies a short-term bullish inverse head and shoulders pattern on the Dogecoin chart, presenting immediate breakout targets.

Notably, Dogecoin (DOGE) has not fared well since February, when the ongoing market-wide downtrend began. For context, after closing January 2025 with a meager 4.28% gain, DOGE dropped 38.69% in February, and by another 17.37% last month, March.

As this bearish pressure persists, the meme coin relinquished the pivotal $0.20 level, which serves as its anchor for a bullish recovery. Now, with Dogecoin battling the bears at $0.17, the asset might be at risk of steeper declines. TradingView analyst MadWhale confirmed this last month.

Dogecoin Forms Inverse H&S Pattern

However, market analyst Trader Tardigrade believes Dogecoin has formed a short-term bullish target that could help it recover the $0.20 support, which has now flipped to resistance. According to the analyst, the meme coin has formed an inverse head and shoulders structure on the 4-hour chart.

For those unfamiliar, the inverse head and shoulders pattern is a bullish structure with a steeper low (the head) in between higher lows (the shoulders). The neckline of the pattern connects the highs between the shoulders, and a breakout is confirmed when prices break above this neckline.

For Dogecoin, Trader Tardigrade’s chart indicates that the left shoulder formed when the meme coin dropped to $0.1658 on March 29. Further, it created the head during the drop to $0.1601 on March 31. Now, the right shoulder has formed with the recent slump to $0.1677 today.

The neckline of this pattern rests on the $0.1760 level. For Dogecoin to confirm the structure, it must break above this region, surpassing the neckline. Notably, the inverse head and shoulders structure typically forms during a downtrend and could signal a potential reversal to the upside. 

DOGE Recovery to $2?

Amid the recent bearish turn of events, Dogecoin is largely due for a trend reversal. According to Trader Tardigrade, if this breakout occurs, a run to the $0.20 price mark could ensue in the short term. While this represents a meager 15% increase from the current price of $0.1734, reclaiming $0.20 would be the first step to a broader DOGE rally.

In previous cases, several analysts suggested that as long as the meme coin holds above the $0.2 psychological support, its structure remains in bullish territories and a broader recovery could be in the works. 

However, Dogecoin gave up this support in early March, collapsing to a new yearly low of $0.1429 on March 11. Despite a recovery from this floor, the $0.20 has proven difficult to reclaim since then. Last month, analyst Ali Martinez suggested that DOGE could rally to $2 despite the prevalent bearishness.