Although things are looking bearish for the majority of assets in the cryptocurrency market, Dogecoin (DOGE) is showing early signs of recovery, with price action breaking a key downward trendline and traders eyeing a potential momentum shift.
Key Takeaways:
- DOGE breaks above lower-timeframe trendline resistance.
- Technical structure hints at potential early-stage recovery.
- Traders watching $0.17 – $0.18 as first breakout confirmation zone.
DOGE Breakout: Early Signs of Momentum Returning
Indeed, Dogecoin has quietly flashed one of its first bullish technical signals in days, having successfully broken above a descending resistance trendline on the hourly chart, an event that often precedes short-term recovery moves, per an analysis shared by crypto trading expert Trader Tardigrade on November 5.
On the daily chart, DOGE displays a repeating market structure, showing sharp sell-offs followed by bottom consolidation phases, then aggressive impulsive rallies. The most recent price behavior mirrors this cycle, with consolidation now attempting to transition into recovery.
Having said that, the bullish conviction remains fragile. To validate this breakout, Dogecoin must hold above the broken trendline and reclaim the next resistance band around $0.17 – $0.18.
Meanwhile, DOGE is currently changing hands at the price of $0.1615, which suggests a decline of 2.08% in the last 24 hours, a 16.85% dip across the previous seven days, and a loss of 37.61% accumulated on its monthly chart, per the latest data.
All things considered, market participants should remain cautious, as failed breakouts, especially in weak market conditions, often lead to liquidity sweeps and deeper pullbacks. Holding support above $0.155 remains critical for bulls to sustain control.
If confirmed, the breakout could fuel a move into higher resistance zones and signal the start of a broader recovery phase, similar to patterns seen earlier this year.
More Must-Reads:
- Cardano Flashes Buy Signal – Plot Twist Incoming?
- Whales Dump $1B in Dogecoin – Panic or Perfect Entry?
- Crypto Crash Could Worsen as Bitcoin Inches Towards New Death Cross
What do you think?
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