Dogecoin Breaks Out: Bullish Momentum Builds After 30% Rally and Key Retest

DOGE has broken a long-term descending trendline and successfully retested it, resulting in gains exceeding 30% with indicators pointing towards further upward movement.

The price is building momentum, potentially setting the stage for a 2x increase, with a possible 133% rally as technical levels align favorably for DOGE.

Open interest has surged from 1.45B to 1.627B, bolstering the rally and suggesting the influx of new long positions, rather than solely short squeezes.

Dogecoin's breakout is gaining momentum as technical indicators confirm a significant shift in trend. The price action mirrors a classic breakout pattern, followed by a successful retest of a long-term trendline. Dogecoin is currently trading at robust levels, supported by increased volume and open interest.

Dogecoin's upward trajectory began after breaching a downward trendline that had constrained its movement for several months. This breakout triggered a rapid surge, with the price of DOGE increasing by 30% in a short period. Momentum quickly built as trading volume increased and bullish sentiment grew across trading platforms.
DOGE Surpasses Long-Term Resistance, Achieving a 30 Percent Gain

This surge followed a period of consolidation within a symmetrical triangle, characterized by a wide range between late 2022 and mid-2025. This pattern indicated volatility compression, which typically precedes explosive movements upon a breakout. Dogecoin validated this pattern by closing multiple candles above the resistance line, signaling a trend reversal.

Following the breakout, the asset entered a clean retest phase, touching the breakout level before resuming its upward movement. This retest validated the breakout and established a foundation for continued upward potential. Dogecoin is maintaining its upward trend and holding above the previous resistance, now acting as support.
DOGE Retest Aims for 2x Gain, Targeting $0.40 Level

Following the Dogecoin breakout, analysts identified a key retest around the $0.20 level, which has held firm. The price experienced a slight dip after the initial rally but found strong support at the breakout point, creating a constructive setup. With the support level holding, bullish continuation has become the prevailing expectation among technical traders.

The next significant level lies near $0.40, representing a potential 133% increase from the breakout zone. This target aligns with previous highs from early 2025, adding technical confluence. With the retest successfully completed and upward momentum increasing, DOGE appears well-positioned for another substantial leg up.

The Dogecoin breakout is approaching a crucial point where buying pressure could facilitate a breakthrough and subsequent surge to new highs. Volume trends, historical resistance levels, and open interest trends suggest further gains. The structure remains intact, and DOGE remains above critical moving averages across various timeframes.
Open Interest Increases With Price, Reinforcing Bullish Setup

The Dogecoin breakout is further validated by a sharp increase in aggregated open interest across derivatives markets. After reaching a low of around 1.45 billion, open interest has steadily climbed to 1.627 billion. This increase signifies growing participation and confidence in the bullish setup.

Price action on the hourly chart confirms this strength, with DOGE forming consistent higher highs and higher lows. The short-term uptrend began on August 3 and has since accelerated towards the $0.225 level. Each upward push has been accompanied by stable open interest, indicating fresh long positions rather than short covering.