Dogecoin is showing strong bullish signals once again. According to technical analysis, DOGE price has completed a third breakout from a falling wedge against Bitcoin. This is a historically powerful pattern that typically leads to upward momentum.
Analysts noted that each of Dogecoin’s previous breakouts from a falling wedge led to price surges. Now, with this latest move, buyers appear to be lining up, pushing Dogecoin higher with fresh momentum. Moreover, it is setting the stage for a potential reclaim of its all-time high.
Dogecoin Price Breakout Momentum Builds
The excitement around Dogecoin isn’t just technical. Over the past seven days, DOGE has climbed 8.40%. Furthermore, it is outperforming the crypto market, which is up 7.70%. Even more impressively, Dogecoin has outperformed other cryptocurrencies, especially those tracked in the Coinbase 50 Index.
The current momentum follows as Dogecoin is completing a bullish rounded bottom pattern. This is a classic chart formation that suggests the end of a long-term downtrend and the beginning of a sustainable rally. This pattern, combined with the falling wedge breakout, leads traders to believe that DOGE’s price could increase in the coming weeks.
“The breakout is gaining strength, and buyers look ready to drive the price toward fresh new highs soon,” one analyst commented on X, formerly Twitter. Sentiment among the Dogecoin community is rising rapidly, with many calling for another historic run similar to the explosive moves seen in 2021.
Key Level to Watch
While optimism is high, traders are keeping a close eye on a key resistance level that could determine Dogecoin’s next move. If DOGE can successfully break and hold above this level, currently viewed by technical analysts as around $0.17 to $0.18, it could open the door to a full-on rally. It might move toward its all-time high (ATH) of around $0.73, set in May 2021.
Reclaiming that ATH won’t happen overnight, but technical indicators, including volume spikes, show better signs. Additionally, strengthening RSI (Relative Strength Index) levels suggest that conditions are increasingly favorable. Momentum traders are already positioning for a larger breakout. Hence, if Bitcoin continues to hold its ground or push higher, the positive sentiment could spill over even more heavily into Dogecoin.
While some investors still dismiss Dogecoin as “just a meme,” this cryptocurrency has repeatedly shown the ability to outperform the market during key breakout periods. It has a passionate online community, celebrity endorsements, most notably from business magnate Elon Musk, and a growing ecosystem.
With technicals aligning and momentum accelerating, Dogecoin could be setting the stage for another iconic rally. All eyes are now on whether it can conquer its next major resistance.
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