Dogecoin might be trading at $0.1, but is already flashing signs of a structural change on the daily timeframe after weeks of downward pressure. After spending much of the past month trading beneath a descending resistance line, the leading meme coin has now broken above that trendline in what one analyst describes as textbook bullish price action.
The analysis, shared on X by crypto analyst Trader Tardigrade, pointed to a breakout and successful retest that could set the stage for a stronger move for the price of Dogecoin.
Breakout Above The Descending Trendline
According to Trader Tardigrade, Dogecoin has officially broken above a descending trendline that had been stopping its price action into a series of lower highs since the middle of January. The daily candlestick chart attached to the technical analysis posted on X shows a clearly defined downward-sloping resistance line, with multiple lower highs forming along the way.
Related Reading
The breakout occurred after Dogecoin had gradually compressed toward the lower end of the pattern. A strong bullish candle pushed the price through the descending resistance when the Dogecoin price broke above $0.1. This was the first sign that sellers were no longer in control at that level.
Descending triangles and descending trendlines are a reflection of sustained selling pressure. When price decisively breaks above such structures, it can indicate a change in market sentiment, especially if accompanied by strong follow-through candles.
Keeping this in mind, the important part of the setup is not just the breakout, but what happened afterward.
Trader Tardigrade pointed out that Dogecoin pulled back to retest the broken trendline. Instead of falling back below it, the price respected the level and held firm. The retest area is around the $0.10-$0.102 range on the chart, and former resistance now appears to have transformed into support.
Here’s The Next Stop For DOGE
This type of move is referred to as a “resistance-turned-support” confirmation. When a previously restrictive level becomes a base for buyers, it strengthens the bullish case and reduces the probability of a false breakout. The analyst described this as a confirmation of textbook bullish price action.
Related Reading
If Dogecoin maintains support above the broken trendline, the next logical upside target is at the most recent swing high around $0.115 to $0.12. That region previously acted as rejection territory in late January before Dogecoin resumed its decline, making it the first major resistance overhead.
The chart projection shared by the analyst suggests the possibility of a continued rally to the mid-$0.13 to $0.15 range if momentum continues. A sustained move above $0.12 would likely draw additional attention from short-term traders watching for confirmation of a trend reversal.
At the time of writing, Dogecoin is trading at the reclaimed $0.10 price level.
Featured Image from Pngtree, chart from Tradingview.com
Credit: Source link
