Dogecoin (CRYPTO: DOGE) has been showing mixed signals in recent price action, with technical analysts identifying both bullish patterns and challenging resistance levels.

What Happened: After weeks of downward pressure, Dogecoin has completed what experts call a “bullish rounded bottom” pattern, suggesting a potential trend reversal.

The rounded bottom occurred following a prolonged downtrend that saw DOGE decline from the $0.205 zone to a low of $0.130 during early April. This U-shaped curve in the price chart showcases two critical lows—the first bottom around $0.13009 and a second higher low near $0.15217.

This pattern typically indicates that sellers are losing momentum while buyers are gradually gaining strength. The structure suggests a shift from bearish to bullish territory may be unfolding.

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The breakout is now gaining strength, and buyers appear ready to push the price toward fresh new highs.

Credit: Trader Tardigrade

Dogecoin is currently consolidating above its breakout zone, which bodes well for further gains.

The cryptocurrency has been moving sideways in two distinct periods over recent weeks. During these phases, DOGE exhibited what analysts call “false break” behavior.

In the first observed range, Dogecoin experienced a false breakdown, dipping below support before recovering. This move was followed by a false breakout, where the price surged above resistance but quickly retraced.

Later, as the cryptocurrency broke out of the range, it encountered resistance at the $0.1650 zone, which had previously acted as strong support. However, despite failing to maintain gains above this level initially, buyers eventually prevailed.

Dogecoin broke above the 100-hourly SMA, which could act as support for any further decline.

What's Next: As of writing, DOGE is trading at around $0.178 and is encountering resistance from a bearish trend line. This trend line is providing support for the cryptocurrency.

This trend line is providing resistance at $0.1740 on the hourly chart. The trend line also coincides with the 61.8% Fibonacci retracement level of the recent downward move from the $0.1920 high to the $0.1520 low.

The first major resistance for bulls appears at the $0.1840 level, followed by another key resistance at $0.1850. A successful close above this resistance might push the price toward the $0.1920 level, with $0.200 representing a major psychological target.

On the downside, support is visible at $0.170, followed by another support level at $0.1680. The main support is at $0.1600, and a break below this level could further worsen the selling pressure, potentially pushing the price toward $0.1550 or even $0.1450.

Technical Indicator: The MACD for DOGE/USD appears to be losing momentum in the bearish zone, while the RSI remains above the 50 level, suggesting modest bullish pressure.