TD Buy Signal and Trendline Support Fuel Dogecoin Recovery Hopes

Dogecoin is exhibiting sustained bullish momentum as it navigates above its trendline support, with the $0.17 mark serving as a pivotal level that could unlock a rally toward $0.21.

The presence of a TD Sequential buy signal, coupled with consistent volume activity, hints that Dogecoin may be preparing for a rebound following recent periods of consolidation.

Despite encountering resistance around $0.167, Dogecoin's recovery from $0.14270 demonstrates underlying strength, keeping upward targets, such as $0.23137, within reach.

Dogecoin is displaying renewed signs of vigor, with analysts suggesting a potential resurgence if key levels are successfully reclaimed. According to crypto analyst Ali, a breakthrough above $0.17 is necessary to potentially propel Dogecoin towards $0.21. The TD Sequential indicator has also indicated a buy signal on the 3-day chart. This technical formation suggests a possible trend reversal after several weeks of price consolidation near $0.162. Currently, Dogecoin is trading at $0.16227, reflecting a 1.46% increase daily, indicating growing interest at these levels.

Trendline Support Holds Strong

Dogecoin has maintained an upward trendline since December 2024, originating from $0.06. Throughout periods of volatility, price rebounds have consistently found support along this rising trend. Dogecoin's price action in late 2024 reached highs of $0.40 before entering a corrective phase. However, steeper declines were averted as buyers stepped in near the trendline.

Source: Ali

Furthermore, Fibonacci retracement levels provide additional insight into the price structure. The 0.5 retracement level sits at $0.16537, acting as short-term resistance. Meanwhile, the 0.382 level rests at $0.12828, establishing a key historical support zone. Higher Fibonacci targets include $0.23137 and $0.30602. Should momentum continue to build, Dogecoin could test the 1.0 Fibonacci extension at $0.48600.

Market Recovery May Be Underway

It's also reported that Dogecoin has risen from a local low of $0.14270 to $0.16199, stabilizing near $0.16307. Buyers need to reclaim this level to advance towards $0.172. However, Dogecoin has recently faced significant resistance around $0.167, leading to mid-range consolidation pressure.

The downtrend from late May saw the price decrease from $0.23000 to $0.12000. This decline was shaped by a descending channel, with unsuccessful breakout attempts at dynamic resistance. Consequently, the $0.12339 level formed a solid base as selling pressure subsided.

Source: BitGuru

Volume patterns also indicate heightened activity during rebounds and breakdowns. This suggests ongoing interest from both buyers seeking opportunities and sellers. The most recent rally, coinciding with significant technical zones, suggests Dogecoin may be gearing up for a more substantial trend reversal.