Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Dogecoin is showing strong signs of a market revival, with recent price movements and technical indicators hinting atan incoming rally. According to technical analysis, Dogecoin’s recent price action has opened up a pathway to $1 that’s becoming increasingly visibleif some conditions are met.
Particularly, technical analysis bycrypto analyst MMBTtrader on the TradingView platform outlines a bullish setup that formed after a decisive Dogecoin price breakout from a long-term downtrend channel on the 3-day candlestick chart. Related Reading Crypto Is Here To Stay—Even The SEC Can’t Do Anything About It, Analyst Says 1 day ago Downtrend Channel Breakout And Retest Complete
As shown in the 3-day candlestick price chart below, which was initially shared by MMBTtrader, Dogecoin broke above a descending parallel channel on July 15. This breakout is significantbecause it represents a shift in market structure from sustained selling pressure to an expansion phase from a channel that had contained its price action since late 2024.
However, after breaking out of this channel in mid-July, Dogecoin kicked off a correction path on July 21 that saw it reach down towards the upper trendline of the descending channel again. As noted by the analyst, this move allowed Dogecoin to successfully retest the breakout zone, which is a move he sees as confirmation thatbulls have regained control.
Notably, the 0.61 Fibonacci retracement level appears as a key pivot point where Dogecoin’s price action eventually found strong support. This support was around the $0.188 price low on August 2, where it bounced upwards and has closed three bullish 3-day candles since then. MMBTtrader interpreted these candles as a healthy signal, suggesting that over-leveraged long positions have already been flushed out, and Dogecoin’s price action is now in a more stable state for a strong upside move.
Dogecoin Will Reach $1 When This Happens
Now that Dogecoin seems to have bounced from its retest of the descending trendline, the analyst highlighted some targets on the way to $1. The first price target is $0.32, which aligns with the 0.236 Fibonacci resistance and acted as a strong support level in December 2024. As such, breaching this level would represent a decisive break above a support-turned-resistance situation. DOGEUSD currently trading at $0.23. Chart: TradingView
One of the most important observationsin the analysis is the $0.40 resistance level, which is marked on the chart with a prominent red horizontal zone. According to MMBTtrader, a clean break above $0.40 would shift Dogecoin into what he calls an “extremely bullish” phase.
A breakout above $0.40 would unlock upside potential and push Dogecoin to new price territories above its current all-time high of $0.73. Particularly, the projection is that of a move to $0.75 and the most-coveted $1 price level. Related Reading Ripple-SEC Legal Drama Ends; XRP Skyrockets 13% 1 day ago
At the time of writing, Dogecoin is trading at $0.2355, up by 6.2% and 17.7% in the past 24 hours and seven days, respectively. The most important thing for bullish momentum right now is to hold above the 0.5 Fib level at $0.216.
Featured image from Unsplash, chart from TradingView