Dogecoin (DOGE) is trying to maintain a key support level after falling 3.2% over the past day. Despite this dip, one analyst believes the leading memecoin is gearing up to retake a major resistance level lost during the pullbacks in late 2025.
Dogecoin’s Strong Start to the Year
Dogecoin has had a strong opening to the year, rising 21% from its January 1st price of $0.117. As the market recovered recently, the cryptocurrency reclaimed an important price zone and reached an eight-week high of $0.156 this Tuesday. It’s worth noting that DOGE had fallen more than 50% from its mid-2025 highs and was in a downtrend until last week’s breakout.
Amid this activity, market observer Trader Tardigrade pointed to a pair of “Tweezer” candlesticks on the monthly chart, which could indicate a bullish reversal. “DOGE has nearly recovered last month’s losses in just 8 days,” he noted, adding that this clearly shows “bullish momentum is building up.”
The analyst also recently highlighted that DOGE has broken out of a bullish pattern, “showing strong upward momentum.” The chart indicates a three-month falling wedge pattern on the three-day chart. Following the recent price surge, Dogecoin broke above the pattern’s upper boundary, signaling a potential initial move toward the $0.140-$0.150 area.
The trader observed that the memecoin showed similar behavior during its 2024 rally, moving within a multi-month falling wedge before breaking out and starting a significant uptrend. If DOGE repeats this pattern, the price could briefly pull back to retest the breakout area as support before the next major surge.
He also noted that after breaking a daily trendline, DOGE appears to be forming a bullish pennant on the one-day chart. A breakout from this pattern could lead to a 40% move toward the $0.20 area, which was lost during the early Q4 2025 pullbacks. However, for this formation to hold, DOGE needs to close the day above the $0.142 level.
Is DOGE’s Rally at Risk?
Despite these bullish perspectives, analyst Ali Martinez warned that Dogecoin is “hanging by a thread.” In a Thursday post, he emphasized that the cryptocurrency is trading within a critical support zone between recent lows of $0.118 and recent highs. If momentum falters and DOGE loses this key zone, it could face a retracement of more than 40%.
According to the UTXO Realized Price Distribution (URPD) metric cited by Martinez, the next major support level is around $0.073, where over 28 billion DOGE tokens were previously exchanged.
The analyst recently pointed out that DOGE’s price seems on track to retest the $0.08 level after breaking down from a multi-year ascending channel. The chart shows that Dogecoin traded within an ascending channel on the three-day chart since 2023. However, the corrections in late 2025 caused the memecoin to fall below the channel’s lower boundary, which could be concerning for its price if long-term bearish momentum persists.
As of this writing, Dogecoin is trading at $0.142, reflecting a 14.55% increase over the past week.
Frequently Asked Questions
Of course Here is a list of FAQs about Dogecoins potential rebound designed to be clear and helpful for all levels of interest
Beginner Definition Questions
1 What is Dogecoin
Dogecoin is a cryptocurrency that started as a joke based on the popular Doge meme Despite its origins it has evolved into a legitimate digital currency with a strong active community
2 What does bullish momentum mean
Bullish momentum refers to a period where the price of an asset is rising or is expected to rise driven by increased buying pressure and positive investor sentiment
3 What is a price target
A price target is a forecasted level where analysts or traders believe the price of an asset could reach within a specific timeframe Its an estimate not a guarantee
Market Rebound Questions
4 Why are people saying Dogecoin is gearing up for a rebound
Analysts point to factors like increased trading volume positive technical chart patterns growing optimism in the overall crypto market and continued support from highprofile figures like Elon Musk
5 Whats the price target being talked about
Note Price targets change constantly As of my last update various analysts have set nearterm targets between 020 and 035 with some longerterm predictions being higher You must check live financial news for the current target
The answer is that specific targets vary by analyst but they are typically based on overcoming key resistance levels on the price chart
6 Is now a good time to buy Dogecoin
This is personal financial advice which I cannot give Cryptocurrency is highly volatile and risky You should only invest money you are prepared to lose and do your own research
7 What could cause this rebound to fail
A rebound could fail if the broader crypto market turns negative if theres negative news if trading volume dries up or if the price fails to break through key resistance levels
Practical Investment Questions
8 Where can I buy Dogecoin
You can buy DOGE on major cryptocurrency exchanges like Coinbase Binance Kraken and Robinhood
9 How is Dogecoin different from Bitcoin
Dogecoin