After a long period of sharp decline and horizontal fluctuations, the meme coin Dogecoin $DOGE is showing positive technical signals that may pave the way for a new upward rally. The currency successfully broke through the downward trend line that had dominated its movement since late 2024, which is a notable development in the context of technical analysis, reflecting a gradual shift in market structure from decline to consolidation and then upward build.
This breakout came after a natural price correction wave, after which the currency rebounded strongly to maintain its stability above advanced support levels, reflecting a gradual return of buying momentum.
This technical cohesion may form a launching pad towards new resistance levels, especially if the price continues to maintain its daily closes above the breakout area.
Completion of the inverted double bottom pattern... an initial signal for Dogecoin's price reversal.
The daily chart shows a clear completion of the inverted double bottom pattern, which is often a technical pattern indicating a bullish reversal after a period of decline.
This pattern formed around the support level of $0.1787, with two close bottoms and a strong rebound towards the neckline at $0.2200, which has already been breached.
This breakout represents a technical confirmation of the end of the downward corrective movement, with expectations of the upward movement extending towards an initial technical target near $0.2700, a level that intersects with the 200-day simple moving average (SMA) and the 50% Fibonacci retracement of the major downward wave.
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Breaking the downward trend line... and the channel turned to support.
The chart also shows Dogecoin's $DOGE breakout of the upper limit of the descending price channel that has constrained its movement for months, with this limit turning into dynamic support after a successful retest. The $0.2200 level has formed an important pivot point at the intersection of the previous downward trend line with the horizontal resistance level, enhancing the credibility of the breakout and indicating a real change in the market's directional structure.
The price succeeded in maintaining its stability above this critical level, giving buyers additional confidence and pushing expectations towards further gains in the near term.
Outlook: Will Dogecoin (DOGE) surpass the $0.27 barrier?
With the current positive momentum continuing, technical indicators show that Dogecoin is likely to test the $0.2700 level first, and if breached, the next target will be at $0.3100, an important technical level representing a 38.2% Fibonacci retracement. In the medium term, surpassing the horizontal resistance at $0.4185 will open the door for broader upward movement towards $0.4670, a significant previous peak.
Conversely, any retreat below the $0.2200 level may push the price to test the model's support again at $0.1787, which is the dividing level between continuing the upward build or returning to the fluctuation range.
Summary
The current technical analysis of Dogecoin (DOGE) shows strong indicators of the beginning of a potential upward wave, supported by a clear reversal pattern and a confirmed breakout of the downward trend line.
The levels of $0.2700 and $0.3100 are key stations to monitor in the upcoming period, with $0.2200 remaining as a pivotal support that determines the fate of the new trend.