Dogecoin is attracting renewed market focus as technical patterns suggest a possible $0.20 breakout, signaling both bullish recovery potential and cautionary signals for traders.
After a turbulent 2025, with DOGE declining over 60%, the cryptocurrency shows signs of stabilization. Analysts highlight a descending triangle and a double-bottom formation, which could guide price action in the coming weeks.
Descending Triangle Signals Caution
On the daily timeframe, DOGE has formed a descending triangle with support near $0.123 and a descending resistance line, as observed across multiple sessions in late December 2025. The pattern is confirmed by at least three successive lower highs coupled with minor upticks in sell volume, showing persistent but waning selling pressure.
As of December 30, 2025, Dogecoin (DOGE) trades near $0.123, forming a descending triangle that signals potential bearish continuation, though historical rebound patterns leave room for upside. Source: Trader Tardigrade via X
According to Trader Tardigrade (@TATrader_Alan), “Dogecoin has fallen sharply this year, but its history of sharp rebounds—often tied to social media activity—keeps upside potential alive for contrarian traders.”
Key technical note: The descending triangle would be invalidated if DOGE breaks above $0.132, as such a breakout would diminish bearish continuity and favor bullish reversal scenarios. Conversely, a decisive break below $0.120 would strengthen the bearish case, potentially opening a decline toward $0.112.
Bullish Double-Bottom Formation Emerges
Contrasting the bearish setup, DOGE has formed a double-bottom pattern on the daily chart, with lows clustered around $0.120–$0.121 serving as strong support. The second bottom has sparked renewed buying interest, indicating short-term stabilization.
Dogecoin’s daily candle formed a double bottom around $0.12, signaling potential stabilization and a possible trend reversal. Source: Trader Tardigrade via X
A neckline has formed near $0.132, and a daily close above this level would validate the double-bottom, suggesting a potential breakout toward $0.136–$0.140. If Dogecoin breaks above the neckline near $0.132, it could confirm a potential trend reversal and open the door to higher price targets.
Clarifying pattern priority: The double-bottom only remains valid if DOGE continues to hold the $0.120 support zone. Any sustained breakdown below this level would override the bullish setup in favor of the descending triangle scenario.
Approaching the $0.20 Target
Technical observers, including KazuaTrading (@KazuaTrading), consider $0.20 a potential target, contingent on DOGE sustaining support and successfully breaking above $0.132. Their analysis highlights repeated resistance tests near $0.13, which, if cleared, could enable further gains toward higher resistance zones, possibly approaching $0.33.
Dogecoin is testing resistance near $0.13, with a potential breakout to $0.20 expected, after which higher targets could follow rapidly. Source: KazuaTrading via X
“Repeated taps on resistance typically precede a breakout. The first target must be confirmed before considering additional upside,” the analysts noted, emphasizing that these levels represent conditional probabilities rather than certainties.
Currently, DOGE is holding a demand zone between $0.120 and $0.115, with a breakout zone identified above $0.160. Market participants should note that broader cryptocurrency weakness and large whale distributions exceeding 150 million DOGE could delay or invalidate anticipated gains.
Outlook and Considerations
While chart patterns and on-chain data hint at a possible rally, Dogecoin’s price forecast remains conditional. Traders are encouraged to adopt measured strategies, avoiding over-leveraged positions. Allocating a portion of capital for gradual exposure can help mitigate risk while positioning for potential upside.
Dogecoin was trading at around 0.12, down 3.06% in the last 24 hours at press time. Source: Brave New Coin
With descending triangle caution and double-bottom bullish potential in play, DOGE’s movement toward $0.20 is contingent on maintaining support levels and overcoming resistance at $0.132. Investors should monitor price action closely within the $0.122–$0.133 consolidation zone for signs of momentum before committing to larger positions.