Dogecoin's recent price action has seen a notable bullish turnaround, with the meme coin bouncing off support earlier this week and continuously growing. Over the past few days, Dogecoin has been on track to regain the $0.25 level after recovering from a low near $0.215. This bullish move coincides with Bitcoin's surge to a new all-time high, which has helped create renewed confidence across the cryptocurrency market in general.

Notably, technical analysis of the Dogecoin/TetherUS pair on the daily candle timeframe shows that the price of this meme coin has now shifted into an ascending channel aiming for at least $0.3.

Dogecoin Confirms Price Breakout as Trend Line Breaks Down

According to a technical analysis posted on the TradingView platform by cryptocurrency analyst Melika, Dogecoin has bounced through a long-standing downtrend line that served as a key resistance level in April. This breakout is due to a clear confirmation of an ascending channel that has formed since the end of April.

The breakout indicates a complete shift from bearish pressure to a bullish environment, with the price structure currently leaning heavily towards bullish. In this case, Dogecoin is now on track to continue its upward trend from the low of $0.13 on April 7, with the next target being to reach the top of the ascending channel.

An important aspect of this breakout is the reaction from the midline of the channel, which Dogecoin has accurately respected before bouncing back. The coin has also retested the range between $0.1950 and $0.2150 earlier this week. Not breaking below indicates that this area has now become a strong structural support to move forward. As long as the price remains above this level, the likelihood of Dogecoin reaching the top of the ascending channel is valid.

What is Dogecoin's Upcoming Target?

With momentum currently leaning towards the bulls, Melika's analysis predicts three key levels that could serve as short-term profit zones for Dogecoin traders. The first target is $0.2530, aligning with the swing high on May 11. If the Dogecoin bulls maintain the bullish trend, the second target of $0.2750 could come into play. Interestingly, this target sits at the upper boundary of the ascending channel.

Behind that is the key horizontal resistance level at $0.3035. This level is significant as it acted as a support level for Dogecoin in January. However, Dogecoin ultimately had a clear breakout below $0.3035 in early February, which transitioned into an area that needs to be watched for resistance. Breaking through this region not only signals a complete recovery from the recent downtrend but also opens the door for higher price levels.

However, any rejection or breakdown below $0.1950 would invalidate this bullish thesis, as it would indicate a breach of both the demand area and the channel structure. At the time of writing, Dogecoin is trading at $0.2447, up 2% in the past 24 hours.