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NewsBTC 2025-05-23 20:30:34

Dogecoin Price Breaks Out Of Bearish Trendline And Enters Ascending Channel Headed For $0.3

Dogecoin Price Breaks Out Of Bearish Trendline And Enters Ascending Channel Headed For $0.3

Dogecoin’s recent price action has taken a noticeably bullish turn, with the meme coin bouncing off support at the beginning of the week and steadily building upward momentum. Over the past few days, Dogecoin has been on the path to reclaiming the $0.25 level after rebounding from a low near $0.215. This upward move coincides with Bitcoin’s surge to new all-time highs, which has helped to inject new confidence across the broader crypto market. Notably, technical analysis of the Dogecoin/TetherUS pair on the daily candlestick timeframe shows that the meme coin’s price has now flipped into an ascending channel headed for at least $0.3. Dogecoin Confirms Bullish Breakout As Trendline Crumbles According to a technical analysis posted on the TradingView platform by crypto analyst Melika, Dogecoin has bounced on through a long-standing bearish trendline that had acted as a major resistance in April. This breakout is a by a clear validation of an ascending channel that has formed since late April. Related Reading: Dogecoin Falling Wedge Breakout Puts Bulls In Charge, Target Moves Up To $0.62 The breakout indicates a full transition from bearish pressure into a bullish environment, with the price structure now leaning heavily in favor of the bulls. In this case, Dogecoin is now on the path to continue its uptrend from its $0.13 bottom on April 7, and the next target is to reach the top of the ascending channel. A critical aspect of this breakout is the reaction from the midline of the channel, which Dogecoin respected with precision before climbing again. The coin also retested the demand block between $0.1950 and $0.2150 earlier in the week. The failure to break below shows that this region has now turned into a strong structural support moving forward. As long as the price remains above this level, Dogecoin’s potential of reaching the top of the ascending channel is valid. What Targets Lie Ahead For Dogecoin? With momentum now on the side of the bulls, Melika’s analysis projects three critical levels that could serve as short profit zones for Dogecoin traders. The first target is $0.2530, which aligns with the swing high on May 11. If Dogecoin bulls maintain the price uptrend, the second target of $0.2750 could come into play. Interestingly, this target is located at the upper boundary of the ascending channel. Related Reading: Dogecoin Price Gearing Up For Major Explosive Rally – Why $1 Is Still In The Cards Beyond that lies the major horizontal resistance at $0.3035. This level is significant because it acted as a support level for Dogecoin in January. However, Dogecoin eventually went on a clean breakthrough below $0.3035 in early February, which has flipped into a zone to look out for resistance. Breaking through this area would not only signal a full recovery from the recent downtrend but also open the door to higher price levels. However, any rejection or breakdown below $0.1950 would invalidate this bullish thesis, as it would indicate a breach of both the demand zone and the channel structure. At the time of writing, Dogecoin is trading at $0.2447, up by 2% in the past 24 hours. Featured image from Getty Images, chart from Tradingview.com

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