Dogecoin (DOGE) Eyes $0.21 Breakout As Trendline Tests Signal Bullish Reversal
Dogecoin is showing signs of a meaningful shift after spending several years under a dominant bearish structure. Recent price behavior across higher and lower timeframes suggests that the meme coin may be preparing for a larger directional move, as market participants closely watch how DOGE reacts around key technical levels.
Weekly Structure Signals a Potential Trend Shift
Noted by Trader Tardigrade is that Dogecoin is being seen on a weekly chart where it has been touching a descending trend line that has been capping gains since the peak in 2021. This is the same trend line that kept Dogecoin in a downtrend for most of the current cycle.
What’s different about the current situation is the way in which the price itself has reacted after briefly breaking higher from the trendline in 2024. Instead of seeing a sharp rejection from the level, DOGE saw some retractions and re-testing of the same region.
These re-tests are significant in the fact that a region of resistance will become a region of acceptance when a buyer is confident enough in the region to continue defending it.
Source: X
It appears that the structure is now exhibiting compression in the price near the trendline with a series of higher lows in relation to the base levels established in 2022 and 2023.
From a cycle perspective, a strong hold above the trendline would reverse it to support levels and potentially revisit the higher levels of resistance established from the late 2021 to 2022 levels.
Also Read: Dogecoin (DOGE)Trading Volume Jumps to $2.12B as Market Activity Picks Up
Dogecoin Daily Chart Shows Accumulation After Liquidity Sweep
On a daily chart, BitGuru points to a distinct series of market phases to show why there still exists a bearish market bias.
In earlier market stages, it can be seen that a rounded base was established for DOGE, which entered a strong expansion state and peaked just above the mid-$0.25 levels. But in the first week of October, the price broke down and removed late longs, turning market sentiment negative.
Source: X
The subsequent selloff in November and December remained contained and lacked strong rallies and sustained lower highs, which indicated a distribution pattern and not a panic sell-off. A break below the equal lows triggered a stop loss and drained sell-side liquidity.
Following this sweep, Dogecoin entered a tight consolidation period. This saw the volatility reduce, with the downside momentum losing steam yet remaining above the $0.12-$0.13 region. The recent breakout in January 2026 saw Dogecoin re-enter the $0.14-$0.15 region with strong buying pressure.
Also Read: Dogecoin Price Prediction: DOGE Could Surge to $20 After Bull Pennant Breakout
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