Dogecoin may be trading at $0.1, but it is already bright signs of structural change in daily life after weeks of stress reduction. After spending most of the last month trading below the descending resistance line, the best meme coin has it it has now broken above that trendline in what one analyst described as textbook bullish price action.
The analysis, shared on X by the analyst of crypto trader Tardigrade, points to an explosion and a successful retest that could set the stage for a strong move in Dogecoin’s price.
Breakout Above a Downward Trend Line
According to Trader Tardigrade, Dogecoin officially broke above a descending trend line that has been stalling its price action in a series of rising lows since mid-January. The daily candlestick chart attached to the technical analysis posted on X shows a clearly defined descending resistance line, with multiple lows forming along the way.
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The outbreak occurred later Dogecoin was gradually pressing towards the lower end of the pattern. A strong bullish candle pushed the price through descending resistance when Dogecoin price broke above $0.1. This was the first sign that the traders were no longer able to control that level.
Descending triangles and descending trend lines are an indication of continued selling pressure. When the price confidently breaks above such structures, it can indicate a change in market sentiment, especially if it is accompanied by powerful tracking candles.
Keeping this in mind, the important part of setting up is not just the outbreak, but what happens afterwards.
Trader Tardigrade revealed that Dogecoin has pulled back to retest the broken line. Instead of going back below it, the price respected the level and held firm. The retest area is around the $0.10-$0.102 range on the chart, as well as previous resistance now it seems that it has changed to support.
Here is DOGE’s Next Stop
This type of move is called an “opposition-turned-support” guarantee. If the previously limited level becomes the basis for buyers, it strengthens the bullish case and reduces the chance of false positives. The analyst interpreted this as confirmation of the bullish price action of the books.
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If Dogecoin maintains support above the broken trend line, the next logical target is at the recent swing high around $0.115 to $0.12. That region previously served as a resistance zone in late January before Dogecoin resumed its decline, making it the first major area of resistance.
Analyst-shared chart projections suggest the possibility of a further rally in the $0.13 to $0.15 range if the momentum continues. A sustained move above $0.12 may attract more attention from short-term traders to watch the confirmation of change of habit.
At the time of writing, Dogecoin is trading at a reversionary price level of $0.10.
Featured image from Pngtree, chart from Tradingview.com
