Dogecoin breaks key trendline and neckline, setting up a potential rally toward the $0.42–$0.43 supply zone within the coming week.
A confirmed inverse head and shoulders pattern on the daily chart signals strong bullish momentum and trend reversal for Dogecoin.
DOGE’s breakout with rising volume and stair-step price action highlights renewed buyer interest and recovery from the $0.14 low.
Dogecoin is flashing bullish signals after completing a key technical formation on the daily timeframe. The meme coin currently trades at $0.216, showing strong recovery momentum. Traders expect a major breakout within seven days. This move may target the $0.42 to $0.43 supply zone. The recent price action confirms the breakout from a descending trendline. Moreover, volume surged during the breakout, signaling strong buying interest.
The Dogecoin/USDT chart from KuCoin shows price movements from October 2024 to May 2025. A clear inverse head and shoulders pattern has formed. The left shoulder developed in March, the head in April, and the right shoulder in late April. This bullish reversal pattern often leads to sustained upward momentum. A neckline connects the peaks between the shoulders and highlights resistance. DOGE broke above this neckline in early May with a powerful green candle.
Strong Trendline Break Enhances Bullish Case
Besides the neckline breakout, Dogecoin also broke above a long-term descending trendline. This trendline began from the December 2024 highs around $0.42. Multiple rejection points along this line now serve as confirmation of its importance. The recent breakout marks the end of the multi-month downtrend. Consequently, Dogecoin now moves within an established uptrend channel. This channel has higher lows and clear stair-step price behavior.
Source: Bitcoinsensus
Additionally, the chart shows a price target near $0.43. This level aligns with past resistance from December and forms a logical supply zone. Hence, traders expect a sharp move if DOGE retests and holds above the broken trendline. A retest would validate the breakout and attract more buyers. Moreover, the pattern suggests strong upward continuation once momentum kicks in.
Historical Price Action Supports Rebound Narrative
From October to November 2024, DOGE surged from $0.10 to $0.35. Volatility followed in December, then a major dip in January. February through April carved the inverse head and shoulders bottom. Since then, Dogecoin has gained nearly 50% from its $0.14 low. Significantly, this recovery came with rising volume and strong technical structure.
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