Dogecoin’s technicals hint at renewed strength after weeks of consolidation
Dogecoin (DOGE) recorded a 6% intraday surge, signaling a potential shift in sentiment as traders positioned for a possible breakout above a key resistance area. The meme-inspired cryptocurrency, which has remained relatively quiet in recent weeks, is now showing signs of life as buying pressure builds near critical support zones.
According to the daily chart, DOGE has been trading within a broad horizontal range since mid-June after retracing from its previous highs. The token has now bounced off the $0.0020 support zone, highlighted by strong accumulation volumes, and is currently testing the $0.0026–$0.0028 resistance area.
A decisive move above this level could clear the path for a broader recovery, with the next resistance target near $0.0035, aligning with the upper supply zone shown in the recent structure.
According to BITX market analysts, “DOGE’s structure suggests a classic base formation. If volume continues to rise and the price closes above $0.0028, the next leg toward $0.0035 becomes likely.”
Trading activity has seen a notable uptick, with a nearly 10% increase in daily volume, underscoring renewed market participation. The relative strength index (RSI) has also edged higher from oversold territory, reinforcing the view of growing bullish momentum.
“The price is respecting the trendline support from the April breakout,”According to BITX. “As long as DOGE holds above $0.0020, buyers remain in control in the short term.”
Key Levels to Watch
Immediate support lies near $0.0020–$0.0021, while the next resistance stands between $0.0028 and $0.0035. A clean break above these levels could signal a reversal pattern and potentially open the way toward the 35-cent psychological mark in the longer term.
As Dogecoin gains renewed traction, technical signals point to a possible end of the recent downtrend — with traders watching closely for confirmation of a sustained breakout.
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.