Dogecoin breaks a three-month downtrend, signaling possible bullish momentum

Dogecoin shows signs of a technical breakthrough after a three-month downward trend. Market data indicates that this cryptocurrency is strengthening with increasing trading volume and bullish signals. Data shows that Dogecoin reached a price of $0.2042 while increasing 21.79% weekly and 9.78% daily at the time of writing. Overcome downward trend A recent tweet from a prominent analyst, Trader Tardigrade, noted a breakout from a downward trend line that had persisted for three months, adding to doubts about the continuation of the bearish phase. Market participants are now focusing on this technical event as a sign of emerging bullish sentiment. Analysts observe that the breakout could signal a reversal from previous downward trends.

Dogecoin has recently moved above the downward trend line that has defined its price action since January 2025. The price has broken out of two parallel trend lines that have acted as strong resistance levels. This move marks a potential turning point in a prolonged weakening phase. Overview of Technical Analysis Recent price action has also caused Dogecoin to trade above important short-term moving averages. The 9-day moving average has just crossed above the 21-day moving average. This crossover is often an indicator of a shift in market momentum. The MACD indicator supports this view as its blue line moves above the orange signal line, with green histogram bars indicating that buying pressure is increasing.

Volume data supports this bullish trend. Increased volumes are accompanied by breakouts above established resistance levels. Technical charts mark this event with visual breakout labels. Traders see these signals as positive signs that the price may rise further. Market sentiment and key price levels The main support levels for Dogecoin appear around the $0.17 to $0.18 range. In the case of a false breakout, the bullish move will be invalidated. The resistance level is identified near the $0.22 to $0.25 range, where sellers have previously entered the market. A sustained move above $0.25 could open the door for a bullish surge towards $0.30. Technical signals indicate that the breakout could continue if the price remains above these levels. The current price level of $0.2042 confirms that Dogecoin has recovered after a prolonged downward trend. Market attention is now focused on whether this coin can maintain its bullish momentum. Analysts and traders are closely monitoring volume and technical indicators as they await confirmation of the next price movement.