Dogecoin surged 63% in July, highlighting strong accumulation and testing the long-term resistance level near $0.40, indicating a potential trend reversal and new bullish momentum.

Dogecoin is approaching the key long-term trend line resistance.

Dogecoin's price action in July 2025 shows a strong rebound as it approaches a key downward resistance trend line originating from its historical peak near $0.86 in 2021. This trend line has historically constrained upward movements, and if the monthly closing price can break above this trend line, it may signal a fundamental shift in market sentiment. Recently, previous resistance levels (especially near the $0.20 to $0.27 range) have turned into support levels, reinforcing the likelihood of sustained upward momentum for Dogecoin. Investors should closely monitor price movements near the intersection of this trend line with the $0.40 to $0.45 region, as this represents a critical moment for Dogecoin's medium to long-term trajectory.

Strengthened support from historical accumulation zones

Analysis of the realized price distribution for UTXO shows substantial accumulation between $0.056 and $0.24, with the largest cluster concentrated around $0.056, where over 29 billion DOGE were last traded. These accumulation areas serve as a solid foundation of support, reducing downside risk and laying the groundwork for further price increases. There are also several important accumulation zones at $0.102, $0.195, and $0.243, with each zone having DOGE trading volumes between 5 billion and 10 billion, further validating the strength of these support levels. This distribution indicates that investor interest at lower price points remains strong, which may limit volatility and support a continued recovery.

The emerging resistance levels are at $0.36 and $0.40.

Resistance is forming near $0.36, and Dogecoin's last trading volume exceeded 5 billion, indicating a potential supply area as holders may seek to take profits. This resistance coincides with the long-term downward trend line near $0.40, intensifying the challenge for bulls. However, trading volume above $0.40 has been relatively low, suggesting that once this resistance is breached, Dogecoin may face less resistance in reaching higher price targets. Maintaining support above the $0.20 to $0.27 range is vital for any sustainable breakout, as this area supports the recent bullish momentum.

Conclusion

Dogecoin significantly increased by 63% in July 2025, thanks to substantial accumulation and recapturing key support levels, bringing it close to the critical resistance level near $0.40. The interaction between historical accumulation areas and the emerging resistance cluster may determine recent price trends. A successful breakout of the downward trend line could signify a significant trend reversal, thereby rekindling investor interest. Maintaining support above $0.20 to $0.27 is crucial for sustaining momentum, making this range a key area to watch. Overall, the current technical outlook for Dogecoin suggests that the market is cautiously optimistic about a continued recovery and potential bullish expansion.