Dogecoin has quietly broken out of a long-term descending channel on its daily chart, opening the door for a sustained upside move. The memecoin, which has been trading within a consistent pattern of lower highs and lower lows since December 2024, is now undergoing a retest of the channel’s upper trendline after a modest rally earlier in the week. According to a recent technical analysis posted by MMBTtrader on TradingView, Dogecoin could be preparing for a sharp upward movement provided it successfully completes a retest of the upper trendline.
Dogecoin Breaks Downtrend Channel; Retest Now Underway
According to the technical outlook proposed by the crypto analyst, Dogecoin has been locked within a descending channel on the daily timeframe ever since hitting a multi-year high of $0.48 in December 2024. The structure has been clearly defined by a pattern of lower highs and lower lows, painting a bearish landscape over the past several months.
March, in particular, intensified this downward momentum as the broader crypto market faced steep losses in the first half of the month. However, Dogecoin’s move to $0.205 earlier this week marked its first real attempt at a breakout. That brief rally pushed the price above the upper trendline of the channel, marking a break above the psychological $0.2 price level that looked like the start of a recovery run.
As the month nears its end, Dogecoin has slightly retraced from its break above $0.2. The coin has dropped 4.2% in the past 24 hours and is currently trading at $0.1746, hovering precisely at the upper trendline of the broken channel. This level now functions as a potential support zone and the outcome of this retest will likely determine the short-term direction for the memecoin.
Analyst MMBTtrader noted in their analysis that a “valid breakout to the upside” has occurred, but warned that a bullish trajectory is uncertain until the retest confirms support. The analyst emphasized that the short-term bear market environment could still push Dogecoin lower, possibly toward major buy zones highlighted in green on the chart below, before any substantial rally begins. These buy zones are around $0.13548 and $0.09024.
Breakout Confirmation Could Send DOGE Price Toward $0.4
If Dogecoin holds above this crucial retest zone and manages to establish a new leg upward, the next target will likely move toward $0.4, based on an order block toward the peak of the descending channel. As shown in the Dogecoin price chart above, there is an intense sell zone around this level, and the meme coin could face resistance here.
Notably, the analyst also highlighted a smaller sell zone between $0.3 and $0.315, but a strong bullish momentum should be able to break through any resistance that arises here. At the time of writing, Dogecoin is trading at $0.175.
Featured image from Adobe Stock, chart from Tradingview.com
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