Bearish sentiment appears to be returning to the broader crypto market, with major digital assets such as Dogecoin retesting key support levels. Presently, DOGE has risen slightly above the $0.16 price mark after a brief rebound on Tuesday. However, the popular dog-themed meme coin has undergone a bullish breakout that hints at growing upside momentum and a potential rally.
A Bullish Breakthrough For Dogecoin
While Dogecoin has plummeted amidst growing bearish market sentiment, Trader Tardigrade, a seasoned crypto analyst, has outlined a bullish development on the DOGE chart. The bullish development reflects DOGE’s notable resilience during the ongoing volatility.
In the post shared on the popular X (formerly Twitter) platform, Trader Tardigrade revealed that Dogecoin is flashing upside signals after finally breaching above a resolute negative trendline.
DOGE’s chart shows that this downward trend line has been visible for over 50 days, suggesting a possible change in momentum. This technical breakout could mark the end of a protracted period of bearish pressure, which is likely to reignite bullish hopes.
According to Trader Tardigrade, a new higher low (HL) and higher high (HH) have been observed in the current microstructure on the daily chart. However, the crypto expert claims that a second higher low would confirm a trend reversal from the downside to the upside.
Should this technical breakout be confirmed, a rally at this point seems likely. The seasoned crypto analyst has underscored the potential for DOGE to rally hard in the upcoming months toward new all-time highs in another X post.
Trader Tardigrade’s forecast hinges on a bullish signal from DOGE’s Average Directional Index (ADX). Specifically, the crucial ADX indicator shows a lower low on the weekly time frame.
Looking at the weekly chart, this technical signal typically occurs right before each bull run. The first time it appeared was in 2017, and Dogecoin saw a notable upswing. Also, in 2020, the same signal re-emerged, which preceded the significant bull run in 2021. While the same signal has unfolded in the current bull market, Trader Tardigrade anticipates a similar result, pointing to a massive upside move beyond the $14 price mark by 2026.
DOGE’s Path To $0.21 Hinges On This Key Zone
DOGE may be set for a bounce, but the dog-themed meme coin must overcome certain key levels. Ali Martinez, a technical expert and trader, has outlined $0.17 as the next crucial level to watch as upside potential grows.
On the 3-day chart shared by Martinez, the Tom DeMark (TD) Sequential has flashed a buy signal, indicating an impending rally. According to the expert, if it can regain $0.17 wth the TD Sequential buy signal now visible on the 3-day chart, DOGE may be able to unleash a rebound toward $0.21.
Featured image from iStock, chart from Tradingview.com
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