Dogecoin may be trading at $0.1, but We are already starting to see signs Structural changes in the daily time frame after several weeks of downward pressure. After spending most of the past month trading below descending resistance; The major meme coins are It has now broken above the trend line in what one analyst describes as textbook bullish price action.
Analysis shared on X by crypto analyst Trader Tardigrade suggested a breakout. and successfully retested That could trigger further strength in Dogecoin’s price.
Breakout above the downtrend line
According to trader tardigrade, Dogecoin has officially broken above A downtrend line that had stopped the price from moving towards a series of lows since mid-January. The daily candlestick chart attached to the technical analysis posted on X shows a well-defined downward resistance line with multiple lows forming along the way.
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Then the breakout occurred Dogecoin gradually compressed towards the lower end of the pattern. When Dogecoin price crossed $0.1, a strong bullish candlestick pushed the price over the downward resistance. This was the first sign that the sellers were no longer in control at that level.
A descending triangle and a descending trend line reflect sustained selling pressure. If the price decisively breaks out of such a structure, it could signal a change in market sentiment, especially if accompanied by a strong follow-through candlestick.
With this in mind, the important part of the setup is not just the breakout, but what happens after.
Trader Kumamushi noted that Dogecoin retreated to retest the broken trend line. Prices did not fall below that level, respecting it and moving steadily. The retest area is the $0.10 to $0.102 range on the chart, which is the previous resistance level. Looks like it’s now supported.
DOGE’s next destination is here
This type of move is called a “resistance to support” confirmation. Once restrictive levels become buyer criteria, strengthen one’s bullish viewsnd reduces the chance of false breakouts. Analysts described this as confirmation of textbook bullish price action.
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If Dogecoin maintains support above the broken trendline, the next logical upside target would be around the recent swing high of $0.115 to $0.12. This region served as a rejection region in late January before Dogecoin resumed its decline, marking the first major resistance overhead.
Chart predictions shared by analysts suggest that if momentum continues, the rally could continue into the mid-$0.13 to $0.15 range. A sustained move above $0.12 will likely attract further attention from short-term traders. looking to confirm trend reversal.
At the time of writing, Dogecoin is trading at the recovered $0.10 price level.
Featured image from Pngtree, Chart from Tradingview.com
