Dogecoin recovers December losses – Here’s why a breakout is likely

AmbcryptoPublished on 2026-01-07Last updated on 2026-05-01

Abstract

Dogecoin (DOGE) recently recovered from a drop below its December low of $0.13, showing a V-shaped reversal. While the longer-term trend remains bearish, selling pressure has eased, and a breakout above the current range could signal a stronger upward move. Key resistance levels to watch are $0.21 and the $0.275–$0.29 zone. Traders may consider buying on a pullback to $0.135–$0.14 or a breakout above $0.156, with targets at $0.185 and $0.21. A drop below $0.124 would invalidate the bullish outlook. Note: This is not financial advice.

Dogecoin [DOGE] fell below a two-week range formation at the end of December but made a V-reversal.

At the time of writing, it was challenging the highs from December and could see a much bigger rally than it had already witnessed.

Dogecoin fell below the $0.13 low in December. This had been a low that the memecoin previously visited in April, before rebounding higher.

January saw DOGE prices take a quick upward turn, but there was no denying the longer-term trend.

The OBV and CMF showed that the selling pressure in recent weeks has begun to ease. Demand needs to be sustained to bring about Dogecoin’s uptrend.

The DMI also signaled a strong downtrend in progress, but it too was relaxing.

Consider the downtrend in its depths in the first week of April. A month later, DOGE had rallied above the previous lower high at $0.205, set in March.

By mid-May, the $0.250-$0.265 supply zone from February was tested, even though the CMF remained below +0.05.

This highlights how memecoin rallies tend to be quick, and traders need to change their bias quickly to catch these impulse moves.

Managing the bullish DOGE expectations

Investors cannot expect Dogecoin to set new all-time highs or reach $1 in the coming months. The more likely scenario to unfold is a rally to the local highs, such as $0.21 and the $0.275-$0.290 supply zones.

The sellers could take control afterward, especially if the Bitcoin [BTC] momentum falters, setting a macro lower high as part of a bear market.

Traders’ call to action – Buy

Though not immediately. Dogecoin was at a local supply zone that stretched back to late November, which could see a price pullback. The technical indicators were strongly bullish on this timeframe.

Bulls can use a breakout past $0.156 and a subsequent retest to buy DOGE. Alternatively, a pullback to $0.135-$0.140 would also offer a buying opportunity.

The $0.185 and $0.210 levels would be the next targets following a breakout, while a price drop below $0.124 would invalidate the bullish bias.

Final Thoughts

  • The Dogecoin rally could go as high as $0.3, even though the 3-day structure was technically bearish at the time of writing.
  • Bulls can wait for a minor price dip to $0.135 to buy, or use a breakout past $0.156 as confirmation of buyer dominance.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Related Questions

QWhat key price level did Dogecoin fall below in December, and why was this significant?

ADogecoin fell below the $0.13 low in December, which was significant because this level had previously acted as a low in April before the price rebounded higher.

QAccording to the article, what are the two potential buying opportunities for DOGE mentioned for traders?

AThe two potential buying opportunities are: 1) A breakout past $0.156 followed by a retest, or 2) A pullback to the $0.135-$0.140 price zone.

QWhat is the more realistic price target for a Dogecoin rally in the coming months, as opposed to reaching $1 or new all-time highs?

AThe more realistic scenario is a rally to local highs, such as $0.21 and the $0.275-$0.290 supply zones.

QWhich technical metrics showed that selling pressure had begun to ease for Dogecoin?

AThe On-Balance Volume (OBV) and the Chaikin Money Flow (CMF) showed that the selling pressure in recent weeks had begun to ease.

QWhat price level would invalidate the bullish bias for Dogecoin, according to the article?

AA price drop below $0.124 would invalidate the bullish bias for Dogecoin.

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3.2k Total ViewsPublished 2025.02.03Updated 2025.02.03

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