Dogecoin Price Eyes Bullish Breakout, Climbs Within Ascending Channel

Dogecoin shows renewed activity, trading above $0.16. Despite recent market volatility, technical indicators suggest a potential breakout is brewing. Analysts are closely monitoring price action, volume, and whale accumulation. This occurs as the broader crypto market consolidates, with Dogecoin positioned within a long-term ascending channel.

Technical Patterns Hint at Upside Continuation

Dogecoin's price remains within an ascending channel on the 1-week chart. The channel's lower trendline has held through several tests, including a recent dip near $0.156. A sustained break above $0.174 could propel the price towards the $0.180 resistance zone and beyond.

Analyst CryptoJack highlights the usefulness of Fibonacci retracement levels in analyzing price movements. The $0.168 level acts as a pivot point, representing the 50% Fibonacci retracement from recent lows. CryptoJack suggests a breakout from the ascending channel could trigger a significant rally, targeting $0.5696 resistance and $0.1000 support.

Source: X

Trader Tardigrade shares a similar outlook, stating, "Dogecoin's non-logarithmic chart remains strong on the green line for the next pump." This reflects the chart's structural integrity despite periods of selling pressure. Technical analysis suggests a break above short-term resistance could drive prices towards $0.175, with a medium-term target of $0.220. Momentum is mixed, with RSI levels near 62 (approaching overbought territory) and a positive MACD crossover. However, the current trend isn't steep, suggesting trader caution. A decisive move above $0.168, supported by volume, is needed for a breakout.

Price Holds Above Support as Trading Range Narrows

Dogecoin remains above the $0.16 support level following a volatile week, with prices fluctuating between $0.179 and $0.156. Consolidation is occurring near $0.1700, with short-term resistance at $0.168 and $0.174. Recent selling pressure pushed Dogecoin away from $0.180, but a recovery from $0.156 indicates buying interest at lower levels.

Source: CoinMarketCap

Volume indicates increased buying activity in the $0.158–$0.160 support range. Volume spikes between 16 and 21 million DOGE suggest defense of key levels. Analysts note retesting of the ascending channel's lower boundary, potentially setting the stage for further upward movement if support holds. The hourly MACD shows weakening bearish momentum, and the RSI has recovered above 50, suggesting a slightly bullish bias. However, momentum remains uncertain, with confirmation needed through sustained volume or a break above $0.168. Without strong momentum, prices could revisit lower support at $0.155 or $0.150.

Whale Accumulation and Market Sentiment Bolster Upward Bias

Evidence suggests large investors have been accumulating DOGE during price dips. Santiment data shows approximately $36 million in DOGE purchases aggregated into whale wallets over a month. This buying activity often signals confidence, especially near support zones. The timing of these purchases during price dips strengthens the support levels between $0.155 and $0.160. Analysts interpret this as whales positioning for a rally, rather than reacting to short-term volatility.

Analyst Ali Martinez describes Dogecoin as being "at a make-or-break level," referencing the long-term ascending channel. Previous tests of this channel's lower boundary resulted in substantial rallies. Martinez notes that $0.16 remains a crucial pivot point; a close below it could trigger a deeper correction towards $0.120. With Dogecoin near $0.168 and other assets relatively stagnant, the market appears to be in a "wait-and-see" mode. Bitcoin stability could trigger upward momentum in altcoins like Dogecoin, potentially breaking the current downtrend.