Dogecoin Monthly Breakout Nears As Resistance Zone Draws Closer

Dogecoin experienced a notable rally in July, climbing from $0.15667 to $0.27031. This upward movement successfully flipped previous resistance levels into support, suggesting a resurgence of bullish momentum.

Significant accumulation zones are identified between $0.056 and $0.243, providing a robust foundation for DOGE’s potential recovery. Minimal resistance is anticipated above the $0.40 mark.

However, DOGE now faces a key resistance area between $0.36 and $0.40. This zone aligns with a long-term descending trendline that originates from the 2021 high near $0.86.

Dogecoin's monthly performance in July showcased a strong rebound, with the price surging over 63% to reach $0.27031. This recovery follows a bounce from $0.15667, indicating renewed strength after a period of correction.

According to insights from "Galaxy" on X, DOGE may be on the cusp of a multi-year trend shift. This potential shift is attributed to historical accumulation levels and the ongoing testing of key resistance. The emergence of a substantial bullish monthly candle further reinforces the presence of sustained buying pressure since the beginning of July.

This recovery has successfully transformed several former resistance zones into new support areas. Chart analysis suggests that the price is now advancing towards a critical descending resistance trendline. This trendline, depicted in green, traces back to DOGE’s 2021 peak of approximately $0.86 and currently intersects the $0.40 to $0.45 range.

Long Term Trendline Resistance

The descending resistance trendline has acted as a ceiling for Dogecoin rallies since its all-time high. The price is now approaching this level once again. A definitive monthly close above this trendline could signal a potential change in the overall trend.

Dogecoin 1-month price chart, Source: Galaxy on X

During this recovery, historical resistance has been converted into support on multiple occasions, lending credibility to the possibility of further upward movement. The horizontal white line near $0.14439 has also demonstrated its significance.

The price recently rebounded from this area in early 2025, reinforcing its role as a strong bottom. Current price action suggests that the $0.20 to $0.27 range is now functioning as a crucial support zone.

Accumulation Seen Below Current Price Levels

The UTXO Realized Price Distribution (URPD) chart reveals substantial Dogecoin accumulation occurring between $0.056 and $0.24. The densest cluster is centered around $0.056, where over 29 billion DOGE last changed hands.

Dogecoin price dynamics chart, Source: Ali on X

This indicates significant investor interest at lower price levels, which now serve as a solid foundation of support. Additional key accumulation levels were observed at $0.102, $0.195, and $0.243, with volumes ranging from 5 to 10 billion DOGE.

These accumulation zones bolster the strength of the current recovery, particularly given the lighter realized activity above $0.40. Minimal volume exists between $0.40 and $0.71, implying reduced resistance in those higher price ranges.

Resistance Emerging at $0.36 and $0.40

Data from analyst Ali indicates that the next significant hurdle lies around $0.36, where over 5 billion DOGE were last transacted. This level represents a resistance cluster where holders may seek to break even.

The convergence of the long-term trendline near $0.40 adds further pressure, potentially creating a reaction zone in the short term. However, the absence of substantial holder activity beyond this area may alleviate potential overhead resistance once cleared.

Maintaining a position above the $0.20–$0.27 range is crucial for any sustained breakout. Dogecoin's July surge, coupled with its established support structure and increasing demand zones, now focuses attention on the $0.36–$0.45 resistance window.