Dogecoin (DOGE) is trying to hold a key position as support after recording a 3.2% drop in the intraday period. Despite this, the analyst suggests that the leading memecoin is preparing to regain the important resistance level lost during the Q4 2025 drawdown.
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Dogecoin Q1 Momentum Builds
Dogecoin has seen an impressive start to the year, recording a 21% jump from its year-opening price of $0.117. Amid the recent market recovery, the cryptocurrency regained significant price territory and hit an eight-week high of $0.156 this Tuesday.
Notably, the largest memecoin by market capitalization has returned more than 50% since its peak in Q2 2025 and was in a critical position until the price breakout last week. During this activity, market watcher Trader Tardigrade highlighted Tweezer candlesticks on the monthly chart, which may suggest that a bullish reversal is taking place.
DOGE “almost recovered last month’s loss in only 8 days,” he explained, which shows that “obviously, bullish momentum is increasing.” Notably, the analyst recently noted that DOGE has broken out of a bullish pattern, “showing strong upward momentum.”
According to the chart, the cryptocurrency showed a three-month falling trend on the three-day chart. After the recent price increase, Dogecoin managed to cross the upper boundary of the pattern, showing the first break in the area of $0,140-$0,150.
The trader emphasized that memecoin showed a similar performance during its 2024 session, going through several falling months before breaking out and starting a spectacular run.
If DOGE repeats its previous performance, the price could briefly pull back to retest the resting area as support before the next big surge, the market watcher added. He also pointed out that after breaking out of the daily trendline, the cryptocurrency appears to be forming a bullish pennant on the one-day chart.
A breakout of this pattern would result in a 40% move to the $0.20 area, which was lost during the initial Q4 drawdown. However, DOGE price needs to close the day above the $0.142 area to hold the formation.
DOGE’s Rally In Danger?
Despite the positive outlook, analyst Ali Martinez confirmed that Dogecoin is “hanging by a thread.” In a post on Thursday, the market watcher emphasized that the cryptocurrency is trading at a key support zone between the local low of $0.118 and the recent high.
If memecoin’s momentum doesn’t hold and the price loses this key area, it could risk a retracement of more than 40%. According to the UTXO Realized Price Distribution (URPD) metric mentioned by Martinez, the next main support is around $0.073, where more than 28 billion DOGE tokens were previously exchanged.
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An analyst recently pointed out that the price of the cryptocurrency appears to be on its way to retesting the $0.08 level after breaking out of a multi-year bullish channel. The chart shows that Dogecoin has traded within an ascending channel on the three-day chart since 2023.
However, the correction at the end of 2025 saw memecoin lose the lower boundary of the rising channel, which may have painted a picture regarding its price if the long-term bearish momentum continues.
As of this writing, Dogecoin is trading at $0.142, an increase of 14.55 in a week.
Featured image from Unsplash.com, Chart from TradingView.com
