Amid the bearish sentiment taking over the cryptocurrency market again this week, Dogecoin (DOGE) is flashing multiple bullish signals as analysts highlight a potential shift in momentum on the daily timeframe, after months of rejection at a descending trendline.
Indeed, DOGE has completed a successful retest, opening the door to higher consolidation and a potential breakout, its latest price action showing a decisive interaction with the long-term descending trendline that has halted rallies since late 2024, per an analysis by Trader Tardigrade on September 22.
Trendline retest and breakout potential
After breaking above it in early September, DOGE pulled back to retest the same level near $0.24 – $0.25, and so far, buyers have defended it. This successful retest, illustrated by repeated touches on the trendline over the past nine months, strengthens the case for a trend reversal.
An upward move from here could propel DOGE toward the next resistance around $0.30, which aligns with recent swing highs.
Higher consolidation zone forming
The analyst also pointed out that Dogecoin had entered a higher consolidation range, trading between $0.25 and $0.30, often signaling accumulation and bulls preparing for a potential breakout. A close above $0.30 would confirm this structure and likely trigger renewed momentum among retail traders, who historically flock to DOGE during breakout phases.
Ichimoku analysis confirms bullish bias
Adding weight to the bullish case, Ichimoku daily analysis (as of September 21) shows DOGE holding above both the Kumo cloud and the Kijun-sen baseline, with no bearish signals in sight.
All five prior bullish triggers remain intact, including the Kumo breakout from September 7, the strong bullish cross above the cloud on September 13, and the Chikou Span holding above the price.
The overall Ichimoku score registers at +4, indicating a strong uptrend across short-, mid-, and long-term outlooks. Immediate support lies at $0.2477 (Kijun-sen) and deeper support at $0.215 – $0.222 within the Kumo cloud.
Currently, the meme coin is trading at the price of $0.2379, which demonstrates a dip of 10.17% in the last 24 hours, a 9.51% drop across the previous seven days, and an accumulated decline of 0.04% on its monthly chart, according to the most recent data.
With technical indicators aligning and price consolidating at higher levels, Dogecoin is at a key decision point. A breakout above $0.30 could open the path for a more extended rally, while a definite breakdown below $0.24 would weaken the bullish thesis.
What do you think?
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