DOGE tests upper range as traders eye potential breakout amid broader crypto recovery
After several weeks of consolidation, Dogecoin (DOGE) has shown signs of renewed momentum, rebounding sharply from its key support zone near $0.0018 to retest a critical resistance level around $0.0026. The price action, according to market data, highlights a strong technical recovery from oversold conditions seen in late September.
The DOGE/USDT daily chart indicates that the coin recently broke out of a prolonged descending channel, signaling a potential trend reversal. The lower green support band between $0.0018 and $0.0020 served as a crucial demand zone where buyers stepped in, preventing further downside pressure.
Currently, DOGE is encountering resistance at the orange zone near $0.0026–$0.0028, which has historically acted as a supply area where sellers tend to emerge. A clear breakout above this level could open the path toward the next major resistance near $0.0048–$0.0050, marked by a previous accumulation zone.
“Dogecoin’s short-term structure has improved after breaking out of its downward trend,” noted BITX market analyst. “However, sustained volume and confirmation above $0.0028 are required to validate a bullish reversal.”
Volume data supports the current upward move, showing increased buying activity since late September. Yet analysts caution that a rejection from the resistance band could trigger a short-term correction back to the $0.0020 support, potentially retesting the breakout zone for strength.
“The market remains sensitive to Bitcoin’s trend, and DOGE’s next move will likely depend on BTC’s stability above the $120,000 mark,” According to BITX .
With investor sentiment improving across the crypto sector, Dogecoin’s resilience near multi-month lows reflects growing accumulation interest. Still, experts emphasize that a close above the $0.0028 level is essential for confirming a medium-term trend reversal and targeting higher resistance levels.
As of writing, DOGE trades near $0.00241, maintaining moderate volume and testing the limits of its newly established recovery channel.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.