Dogecoin Price Eyes Bullish Breakout, Climbs Within Ascending Channel

Dogecoin showed renewed activity as its price continues to trade above the $0.16 mark.

Despite recent market volatility, technical patterns suggest that DOGE may be preparing for a breakout.

Analysts and traders are closely monitoring price movements, volume activity, and whale accumulation trends.

This comes as the broader crypto market navigates through consolidation phases and Dogecoin positions itself within a long-term ascending channel.

Technical Patterns Show Potential for Upside Continuation

Dogecoin’s price structure remains inside an ascending channel on the 1-week chart. The channel’s lower trendline has held through multiple tests, including the recent dip near $0.156.

If the price trend persists, a breakout above $0.174 could pave the way toward the $0.180 resistance zone and beyond.

The analyst CryptoJack also mentioned that Fibonacci retracement levels remain highly useful for determining the present movement of prices.

The $0.168 level has emerged as a pivot level as it represents the 50% Fibonacci retracement from recent lows.

According to CryptoJack, “a breakout from the ascending channel could trigger a strong rally,” and the resistance level will be $0.5696, while the support level is $0.1000.

A similar perspective is shared by another trader known as Trader Tardigrade. He stated,

“For the next pump, Dogecoin’s non-logarithmic chart is staying strong on the green line.”

This view can be attributed to the fact that despite investor selling phases, the structure of the chart stays intact.

Based on technical analysis, a sustained break above the short-term resistance levels may lead to a further increase in prices towards $0.175 with an ultimate target of $0.220 as the medium-term target.

Momentum remains mixed as RSI levels hover near 62, approaching overbought conditions. The MACD shows a positive crossover.

However, the trend is not yet steep, indicating a cautious stance among traders. Any breakout will likely require a clear move above $0.168 with volume support.

Price Movement Holds Above Support as Trading Range Narrows

Dogecoin has remained above the $0.16 support level after a volatile trading week where the price fluctuated between $0.179 and $0.156.

Dogecoin is now consolidating near $0.1700, with short-term resistance observed at $0.168 and $0.174.

The recent selling pressure pulled Dogecoin away from the $0.180 zone, but a steady recovery from $0.156 suggests buyers are entering at lower levels.

Volume indicators show buying activity has increased in the $0.158–$0.160 support range.

Spikes in trading volume between 16 and 21 million DOGE suggest that market participants are defending key levels.

Analysts note that the lower boundary of Dogecoin’s ascending channel is being retested, which may provide a foundation for the next leg upward if support holds.

The hourly MACD indicates weakening bearish momentum, while the RSI has recovered above the 50 level, suggesting a slight upward bias.

However, momentum remains mixed, and market watchers are looking for confirmation through sustained volume or a break above the $0.168 resistance.

Without strong momentum, the price could revisit lower support zones at $0.155 or $0.150.

Whale Accumulation and Market Sentiment Support Upside Bias

Moreover, there is evidence that large investors have continued purchasing DOGE during its slight decline in price.

According to the data from Santiment, there have been big purchases of DOGE worth around $36 million, which have been aggregated into whale wallets within a month.

This level of trading makes it indicate that there is a possibility that the large investors are anticipating a price direction.

This buying activity often reflects confidence in Dogecoin’s future, especially when it occurs near support zones.

The timing of these purchases during price dips adds weight to the current support levels between $0.155 and $0.160.

Analysts see this as a possible sign that whales are positioning for a rally, rather than reacting to short-term volatility.

Analyst Ali Martinez added that Dogecoin is “at a make-or-break level,” pointing to the long-term ascending channel as a guide.

The last time Dogecoin tested this channel’s lower boundary, it led to a substantial rally.

Martinez further noted that the $0.16 level remains a crucial turning point and that a close below it could lead to a deeper correction toward $0.120.

While Dogecoin is trading near $0.168 and other assets remain stagnant. This coordinated movement implies that the market is in a stage that can be termed as “watch and wait.”

Should Bitcoin remain stable, the altcoins such as Dogecoins may as well break the downtrend and start trending upwards.