Dogecoin (DOGE) appears to be entering a potential recovery phase following weeks of bearish pressure and price corrections. After failing to reclaim the $0.20 mark, the meme coin is now showing early signs of an upward shift, fueled by a technical breakout and renewed bullish indicators.
According to Trader Tardigrade, a well-known technical analyst, Dogecoin’s price chart has revealed a critical breakout on the 1-day timeframe. For the first time in several months, DOGE has recovered from a breakdown rather than continuing its descent—an encouraging signal that the correction phase may be coming to an end.
Wyckoff Accumulation and RSI Bullish Divergences Boost Optimism
Trader Tardigrade noted that DOGE is forming a Wyckoff Accumulation pattern, a classic technical setup that typically precedes significant uptrends. Specifically, the asset has completed a “perfect test” in phase C, suggesting it may soon reach the Last Point of Support (LPS)—a critical point indicating the bottom of a pullback.
Following the LPS, DOGE could move higher into phase D, where a Sign of Strength (SOS) typically confirms bullish sentiment. However, DOGE must first break through strong resistance at $0.17, a level that has capped upward momentum recently. A clear move above this threshold could trigger a broader rally.
In a further bullish signal, Dogecoin recently formed its second Relative Strength Index (RSI) bullish divergence. While the first divergence was weaker—with DOGE making a lower low and RSI showing an equal low—the second shows a lower low in price and a higher low in RSI, suggesting a stronger reversal potential.
Technical Recovery Backed by Market Momentum
Though DOGE remains under pressure from broader crypto volatility, these technical signals imply growing strength and potential for an upward trend. The recent increase in market momentum across the crypto sector may also support a DOGE breakout, especially if Bitcoin and Ethereum continue to rally.
If DOGE successfully clears the $0.17 mark, analysts believe it could quickly approach higher resistance zones, setting the stage for a new consolidation phase where bullish momentum builds before a major price move.
What’s Next for Dogecoin?
While short-term corrections and pullbacks remain possible, the current technical landscape is tilting in favor of the bulls. Should the Wyckoff pattern continue to play out and RSI divergences maintain momentum, DOGE could be poised for a multi-phase uptrend in the coming weeks.
For traders and investors, all eyes are now on the $0.17 breakout level. A decisive move above it could confirm that Dogecoin has indeed found its bottom.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
