$DOGE is showing strong signs of a market recovery, with recent price movements and technical indicators suggesting a possible rally. According to technical analysis, the recent price action of Dogecoin has opened a path to $1, which is becoming increasingly visible if certain conditions are met. In particular, the technical analysis by cryptocurrency analyst MMBTtrader on the TradingView platform highlights a bullish setup that formed after a decisive breakout of Dogecoin's price from a long-term downward channel on the 3-day candlestick chart.
**Breakout and Retest of the Complete Downward Channel**
As shown in the 3-day candlestick chart initially shared by MMBTtrader, the $DOGE broke above a descending parallel channel on July 15. This breakout is significant because it represents a shift in market structure, from sustained selling pressure to an expansion phase of a channel that contained its price action since late 2024. However, after breaking this channel in mid-July, Dogecoin began a corrective path on July 21, which led it back toward the upper trendline of the descending channel. According to the analyst, this movement allowed Dogecoin to successfully retest the breakout zone, which he sees as a confirmation that the bulls have regained control.
**Fibonacci Levels and Support**
Notably, the Fibonacci retracement level of 0.61 appears as a key pivot point where Dogecoin's price action found strong support. This support was around the low price of $0.188 on August 2, where it rallied and closed three bullish 3-day candles since then. MMBTtrader interpreted these candles as a healthy sign, suggesting that excessively leveraged long positions have already been eliminated, and Dogecoin's price action is now in a more stable state for a strong upward move.
**Path to $1**
Now that the $DOGE seems to have recovered from the retest of the descending trendline, the analyst highlighted some targets on the way to $1. The first price target is $0.32, which aligns with the Fibonacci resistance of 0.236 and acted as a strong support level in December 2024. Thus, breaking above this level would represent a decisive break above a support-turned-resistance situation. One of the most important observations in the analysis is the resistance level of $0.40, marked on the chart with a prominent red horizontal zone. According to MMBTtrader, a clean break above $0.40 would shift Dogecoin into what he calls an “extremely bullish” phase. A breakout above $0.40 would unlock upside potential and push Dogecoin into new price territories above its current record of $0.73. In particular, the projection is for a move to $0.75 and the highly coveted price level of $1.
At the time of writing, Dogecoin is trading at $0.2355, with highs of 6.2% and 17.7% in the last 24 hours and seven days, respectively. The most important thing for the optimistic moment now is to stay above the Fibonacci level of 0.5 at $0.216.
