Dogecoin has emerged from a prolonged downtrend and is holding above $0.16. This change has attracted the attention of analysts who are watching to see if such a setup will soon lead to a DOGE price surge.
Surpassing the $0.16 position sets Dogecoin's price for upward targets.
Notably, recent price action of Dogecoin shows that this meme coin has regained the $0.16 level, which was a resistance area for most of Q2.
This level serves as a support threshold for a potential reversal, assuming buying pressure continues.
Market analyst Ledger Bull has pointed out three bullish targets: $0.20333, $0.22899, and $0.25383. These are the next areas that DOGE's price could react to if bullish strength returns.
Additionally, the move above $0.16 comes after a prolonged downtrend that has hindered Dogecoin's progress for several weeks. This breakout is supported by an initial increase in volume, followed by a consolidation phase.
Analyst Ledger Bull is keen to see if volume returns in the next bullish phase. A solid close above $0.20333 would confirm a change in market structure and open the door for Dogecoin's price to test higher targets on the chart.
DOGE is retesting the downward trend line.
Furthermore, Trader Tardigrade notes that Dogecoin is retesting the long-term downtrend line on the 4-hour chart. This line, drawn from a series of lower highs formed from late May to mid-June, previously acted as a ceiling for any bullish attempts.
This week's meme price action shows that DOGE has returned to the trend line after breaking it. This is a common pattern in technical analysis that often tests the strength of a new trend direction.
Additionally, the area around $0.158 to $0.162 is a retest zone. This could represent a solid recovery at this level, indicating no breakout, and it seems the buyers are protecting the new support level.
Furthermore, higher lows and increased volume on bullish candles will confirm that higher lows will follow the stagnation of the downtrend.
If this retest is successful, the market may witness Dogecoin's price continue to rise to $0.20.
The Fractal model shows that DOGE could repeat the 2015–2017 setup.
Another analyst, GalaxyBTC, has noted a longer-term repeating pattern, compared to Dogecoin's price structure from 2015 to 2017.
During this time, the asset has followed a three-wave accumulation pattern before beginning a strong uptrend.
The analyst notes that a similar sequence is reappearing on the weekly time frame, supported by an intact upward trend line.
In the historical pattern, the third wave completed just before a major breakout. The price of Dogecoin currently appears to be in a similar cycle, with the third trend moving upward. Support remains on the same upward line that has been maintained for several quarters.
This advancing line, along with the similarity to historical price action, has led to speculation that Dogecoin may be in a similar bullish phase.
Meanwhile, recent analysis shows that the price of Dogecoin is consolidating its base with a strong trend line and horizontal support at $0.159. The second weekly touch of the long-term upward trend line corresponds with historical bullish reversals.
Moreover, analysts expect the price to rise to $0.25 and potentially to $1 if this upward momentum continues, supported by increased trading volume.