Dogecoin Rebounds 10% From Key Support Zone, Traders Eye Breakout

Dogecoin ($DOGE) has demonstrated notable resilience, rebounding from a critical support zone between $0.15 and $0.17. This zone has consistently attracted buyers, preventing further price declines. The rebound has brought DOGE back into focus, with traders anticipating a potential breakout from its descending resistance trendline.

This bounce is significant as it indicates accumulation and traders positioning for an upward move. The technical indicators now suggest a classic breakout setup. DOGE is currently testing the upper boundary of a descending triangle pattern, a setup often followed by explosive moves once resistance is broken. If the price breaks above the $0.168–$0.170 range, it could trigger a wave of buying momentum.

Several factors support a bullish breakout, including consistent higher lows since late 2023, volume build-up during attempts to cross resistance, and rising overall market sentiment, especially for meme coins. Traders should closely watch for a confirmed breakout with increased trading volume, which would signal strong bullish intent.

If DOGE successfully breaks the $0.170 resistance, analysts are eyeing short-term targets around $0.20 to $0.22. Should the momentum continue, medium-term targets could extend up to $0.25—levels that align with previous highs and Fibonacci retracement zones. Traders may consider entry points near the breakout area with stop-losses just below the recent support. Profit-taking can be staggered around the $0.20 and $0.25 marks to manage risk while riding the upside.

DOGE's price has held above $0.16 after a breakout, retesting the trendline and mirroring the 2015–2017 pattern with targets up to $0.25. This historical pattern provides a technical basis for the bullish outlook, as it suggests that DOGE could potentially reach higher price levels in the near future. The recent breakout above a descending trendline has reignited bullish sentiment, supported by favorable technical indicators. The Relative Strength Index (RSI) on the daily chart stands at 51, having moved above its neutral level of 50, indicating indecision among investors. The Moving Average Convergence Divergence (MACD) indicator also displayed a bullish crossover last week, showing a rising green histogram bar above its neutral level, which indicates bullish momentum and an upward trend.

However, if DOGE faces a correction, it could extend the decline to retest its trendline support level at $0.15. This support level has been crucial in maintaining the price stability of DOGE, and any breach below this level could potentially lead to further price declines. Therefore, it is essential for DOGE to hold above this support level to maintain its bullish momentum.

The bullish momentum is also supported by the increased accumulation and a surge in bullish bets from traders, suggesting that a breakout could be on the horizon for DOGE. The long-to-short ratio of DOGE reads 1.10, reflecting bullish sentiment in the markets, as more traders are betting on DOGE to rally. The number of large-wallet holders is also rising, further supporting the bullish outlook. If DOGE continues its upward trend and closes above the weekly resistance at $0.18 on a daily basis, it could extend the rally to retest its June 11 high of $0.20. However, if DOGE faces a correction, it could extend the decline to retest its trendline support level at $0.15.