Dogecoin (DOGE) Price “Returns to Form” After Breakout – But This Key Zone Must Hold

Dogecoin's price is exhibiting renewed momentum, capturing the attention of traders. Having successfully breached a significant resistance level, the popular meme coin has transformed it into a support zone, signaling a potentially bullish outlook.

Over the past week, DOGE has demonstrated a consistent upward trajectory. The focus now rests on a pivotal level that could dictate its subsequent movements. As noted by crypto analyst Ali on X, Dogecoin possesses further upward potential, contingent upon maintaining its position above this crucial threshold.

The price action is unfolding within a familiar range that has been established for several months. Following the recent surge, DOGE is currently trading in the upper portion of this range, aiming to solidify its momentum after reclaiming a key pivot point.

Analyzing the daily chart, Dogecoin's price has been fluctuating between $0.14 and $0.25. It recently surpassed the $0.19 mark, which previously acted as resistance in late June. This same level is now functioning as support, making it a focal point for traders seeking indications of strength.

According to Ali's analysis, the target remains the upper boundary of the range, but this is conditional on DOGE remaining above $0.19. Currently, the price is hovering around $0.1920, suggesting a potential retest of support. Should this level hold, bulls may gain the necessary impetus to target the subsequent resistance area.

DOGE Price Daily Structure Continues to Favor Bullish Continuation

Since reaching a low near $0.15 in June, Dogecoin has established a consistent pattern of higher lows. This upward structure suggests a potential shift in trend, favoring buyers. An earlier rally in July propelled the price near $0.21, confirming the breakout through $0.19 with conviction.

Source: X/Ali

Although volume levels are not depicted on the chart, price action indicates that buyers entered the market shortly after the previous resistance became support. If Dogecoin's price remains above this level, it will sustain the current trend. A drop below $0.19 could signal a potential move towards $0.17 or lower.

DOGE's Next Resistance Zone Could Determine the Range Break

Dogecoin is encountering resistance near $0.21, the same point where its recent rally encountered headwinds. A successful breach of this zone could pave the way for another attempt towards the $0.25–$0.27 range, which previously halted price movements in April and May. Surpassing this level would not only signify another breakout but could also complete the full range and initiate a more substantial upward trend.

Conversely, if buyers lose momentum, DOGE could retreat to support levels around $0.17 or even $0.14. Both of these levels have demonstrated resilience in the past and could attract buyers if the price declines.

Furthermore, DOGE's price remains in a technical recovery phase. As long as it maintains its position above the $0.19 mark, the overall setup suggests further upside potential. This mark is being closely monitored by traders and analysts, as it could be the catalyst for the next breakout attempt.

The chart pattern aligns with the bullish outlook shared by Ali on social media. With the market testing a critical pivot point, the upcoming sessions will determine whether Dogecoin can sustain its recovery or revert to the lower range.