Dogecoin Eyes Breakout Above Key Trendline-Will Momentum Hold Or Fade?

[Ben Graham]

Dogecoin is showing signs of recovery, trading around $0.22 with a 31% gain over the past month. As it approaches a key trendline resistance, speculations are whether momentum can carry DOGE higher or if fading strength will lead to another pullback.

Signs Of A Bottom: DOGE Prepares For Potential Uptrend Continuation

Giving a key update on the DOGE daily chart, Master Kenobi pointed out early signs that Dogecoin may have established a bottom, potentially setting the stage for a continuation of its upward trend. Recent price action suggests that bullish momentum is building; however, follow-through is now crucial for confirmation.

For this bullish continuation to take hold, Kenobi emphasized that DOGE must make a decisive move above the yellow trendline within the next 1–3 days. Such a move would be essential to push the Relative Strength Index (RSI) back above its moving average, a signal that could help reignite bullish sentiment and strengthen the ongoing uptrend.

However, if Dogecoin fails to break above the yellow trendline within that short window, the risk of a pullback increases. Kenobi warned that in such a scenario, the price may slide back toward the red trendline, which marks the base of the ascending channel and could be retested by early September.

This technical setup places Dogecoin at a crucial juncture, with the coming days likely to determine its short-term trajectory. A successful breakout would validate the bottom and support a continuation of the rally, while a failed breakout may cause DOGE to retrace lower before attempting another leg up.

Dogecoin Holds Steady At $0.22 After 31% Monthly Gain

In a post on X, cexscan provided an update on Dogecoin’s current market performance, noting that the meme coin is trading around $0.22 and showing a modest upward trend in recent days. This recovery has sparked renewed interest among traders, particularly as short-term momentum appears to be gaining strength.

Over the past 30 days, Dogecoin has recorded a solid gain of 31.84%, reflecting a notable rebound from previous lows. However, the broader picture remains mixed, as year-to-date performance is still down by 31.04%, highlighting the lingering impact of earlier sell-offs.

Cexscan also observed that trading volume has been moderate overall, but a recent spike indicates growing market engagement. This increase in volume could support further price movement if sustained, especially if buyers continue to step in during key moments.

Despite these positive signs, Cexscan urged caution, pointing out that some downward pressure still lingers in the market. While indicators suggest the potential for continued gains, Dogecoin will need to maintain momentum and avoid sharp pullbacks to confirm a lasting trend reversal.