Dogecoin Breaks Descending Trendline and Ends Lower Highs Streak with Bullish Confirmation

Dogecoin breaks trendline and forms higher high, ending lower highs pattern since July 22.
On-chain volume rises 15% in a week, reflecting renewed trader interest after breakout.
DOGE eyes $0.29 as price stays above 20- and 50-day SMAs but under short-term resistance.

Dogecoin (DOGE) has surpassed a descending resistance trendline on the 1-hour chart, signaling a potential shift in short-term momentum. The breakout was confirmed as DOGE established a new higher high (HH), effectively ending the pattern of lower highs that had been in place since July 22. As of this writing, Dogecoin is trading at $0.2364.

Trendline Breakout Confirms Bullish Shift

According to analysis, the breakout above the trendline occurred on July 26, following several unsuccessful attempts earlier in the week. The price had consistently formed lower highs before breaking above the resistance, which now serves as a support level.

On-chain activity has increased in tandem with the price recovery. Data indicates a 15% surge in Dogecoin's transaction volume over the past seven days. This suggests that traders are reacting to the trendline breakout with renewed interest.

Indicators Show Mixed Signals as Market Stabilizes

While the trendline breakout suggests a bullish trend, technical indicators offer mixed signals, implying that consolidation may still be underway. The Relative Strength Index (RSI) stands at 60.46, placing DOGE in neutral territory, which suggests further upward potential.

The MACD histogram shows slight weakness with a reading of -0.0005, but moving averages still support a bullish outlook. Dogecoin is also trading above the 20- and 50-day Simple Moving Averages (SMAs), indicating medium-term bullishness.

However, it remains below the 7-day SMA, suggesting current short-term price resistance. Market analysts are closely monitoring the $0.25–$0.27 range. A successful break and hold above this range could pave the way for DOGE to test resistance at $0.29 in the near term.