Dogecoin (DOGE) is showing signs of a bullish trend reversal, with a classic double-bottom pattern forming on its daily chart. As the memecoin hovers near $0.17, traders are eyeing a potential breakout toward the key resistance level at $0.25, a price DOGE last approached in early 2024.
Despite recent consolidation, DOGE continues to rank as the seventh most traded cryptocurrency by 24-hour volume. This sustained interest paired with emerging bullish signals could fuel a renewed rally in the coming months.
Double Bottom Pattern Hints at Reversal
DOGE’s price structure is currently shaped by a textbook double-bottom formation, anchored by consistent support near $0.15. This chart pattern is often seen as a reliable reversal signal, suggesting a shift in momentum from bearish to bullish.
DOGE 1-day chart. Source: TradingView
Over the past few weeks, DOGE has shown resilience at the $0.15 level, creating a strong foundation for a potential upward move. Technical traders are now watching for a confirmation breakout, ideally with volume, that could send the price back to the $0.25 zone.
The significance of this level goes beyond technicals; $0.25 is a psychological barrier, and reclaiming it would mark a major sentiment shift among traders and long-term holders alike.
Breakout from Descending Channel Underway
In addition to the double bottom, DOGE has recently broken out of a descending price channel that has capped its gains since February. A move above the 50-day trendline, followed by a successful retest, has sparked optimism among analysts.
Dogecoin analysis by Trader Tardigrade. Source: X
Crypto commentator Trader Tardigrade noted on X that DOGE has begun forming higher lows and higher highs, a classic sign of bullish momentum building. This suggests a trend reversal may already be in motion.
On-chain data supports this outlook. According to UTXO Realized Price Distribution (URPD), the largest holder cluster sits at $0.177, representing 8.94% of DOGE’s circulating supply. A daily close above this zone would be significant, potentially opening the door to the next resistance levels at $0.206 and $0.25 and beyond to $0.36 in the longer term.
Mixed Sentiment Among Holders
While technicals are improving, not all on-chain signals are bullish. Glassnode data reveals that DOGE holders are currently experiencing the highest level of unrealised losses in months. This may reflect ongoing profit-taking or fear-driven selling near current prices.
DOGE UTXO Realized Price Distribution. Source: Glassnode
Yet, these same metrics can signal a bottoming phase. Periods of widespread losses often precede recoveries as weak hands exit and stronger holders accumulate. As DOGE stabilises near $0.17, it could be preparing for a more sustained move upward.
Sentiment in the memecoin space remains lively despite this short-term pain. Community-driven assets like DOGE often thrive on hype cycles and social momentum, rather than purely on fundamentals.
Memecoins Still Leading Market Performance
According to recent DYOR data, memecoins have significantly outperformed other crypto sectors in the past 90 days, posting an average return of 56.67%. This reinforces DOGE’s potential upside, even if it doesn’t immediately break above $0.25.
90-day Relative Strength of Crypto Narrative. Source: DYOR/Dune Analytics
Memecoins tend to rally in waves, and historical data shows DOGE has posted gains between 300-500% during previous hype cycles. As Bitcoin and major altcoins gear up for the next macro move, DOGE may benefit from retail traders rotating into high-volatility assets.
With technical patterns strengthening and broader memecoin interest rising, DOGE appears poised for a rebound. A decisive move above $0.177 would be the first major confirmation, with $0.25 as the immediate target. A breakout above that level could see DOGE return to the spotlight, especially as speculative interest builds during the next market surge.
DOGE Nears Critical Turning Point
Dogecoin’s recent price action paints a compelling picture: the double-bottom setup, channel breakout, and strong support at $0.15 all suggest upward momentum is building. While short-term losses persist among holders, the overall market structure hints at a potential breakout.
If DOGE reclaims $0.177 and sustains its upward trajectory, a push to $0.25 could materialise in the coming weeks. With memecoins outperforming and Bitcoin’s movement often sparking altcoin rallies, DOGE could soon find itself riding a new wave of bullish momentum.
