Dogecoin Breaks Bear Trend, Targets 20% Gain

Dogecoin (DOGE) has recently broken out of a prolonged bear trend, maintaining its position above the $0.16 mark. This shift has garnered significant attention from analysts who are closely monitoring whether this breakout will lead to a rally in the near future.

Notably, Dogecoin has regained the $0.16 position, which had been a resistance zone throughout the second quarter. This level is crucial as it serves as a support for a potential reversal, assuming that buying pressure continues. Market analyst Ledger Bull has identified three potential upside targets: $0.20333, $0.22899, and $0.25383. These targets represent zones where DOGE price may react if bullish strength returns.

The move above $0.16 followed a prolonged downtrend that had constrained Dogecoin’s progress for weeks. The breakout has been supported by an initial surge in volume, followed by a phase of consolidation. Ledger Bull is keen to observe whether volume returns on the next upward move. A firm close above $0.20333 would validate the shift in market structure and open the door for Dogecoin to test the higher targets mapped on the chart.

Trader Tardigrade noted that Dogecoin was retesting a long-term descending trendline on the 4-hour chart. This line, drawn from the series of lower highs that formed between late May and mid-June, had previously acted as a ceiling for every rally attempt. The meme coin's price action this week showed DOGE pulling back to the trendline after breaking through it, a common pattern in technical analysis that tests the strength of a new trend direction. The zone around $0.158 to $0.162 was identified as the retest region, where a firm bounce could indicate that the bulls are defending the new support. A higher low and an increase in volume on the resulting upward candle would confirm that a higher low is followed by a suspension of the downward trend. Should this retest be successful, the market may see Dogecoin price resume its upward path to $0.20.

Another analyst, GalaxyBTC, observed a longer-term repeating pattern that drew comparisons to Dogecoin's price structure from 2015 to 2017. During that period, the asset followed a three-wave accumulation pattern before launching into a major uptrend. The analyst noted that a similar sequence is appearing again on the weekly timeframe, supported by a rising trendline that remains intact. In the historical pattern, the third wave was completed just before a major breakout. Dogecoin price now appears in a similar cycle, with the third trend moving up. Support remains on the same rising line that has held for several quarters. This progressive line, along with parallels to historical price activity, has led to speculation that Dogecoin may be in a similar bullish phase. Recent analysis showed Dogecoin price reinforcing its base with a strong trendline and horizontal support at $0.159. The second weekly touch of the long-term ascending trendline aligns with historical bullish reversals. Analysts expected a push toward $0.25 and potentially $1 if momentum continues, supported by rising trading volume.