Dogecoin Shows Potential Bullish Reversal After Trendline Break with Eyes on $0.29 Resistance

• Dogecoin breaks descending trendline, ending lower highs pattern since July 22.

• On-chain transaction volume increased by 15% over the past week, indicating renewed trader interest.

• DOGE price remains above 20- and 50-day SMAs but faces short-term resistance near $0.25–$0.27.

Dogecoin bullish trend confirmed after trendline breakout; rising volume signals momentum. Track DOGE’s path to $0.29 resistance with COINOTAG’s expert insights.

Dogecoin Breaks Descending Trendline, Signaling Bullish Momentum

Dogecoin (DOGE) has decisively broken above a descending resistance trendline on the 1-hour chart, marking a significant shift in short-term momentum. This breakout ended the pattern of lower highs that had persisted since July 22, with DOGE establishing a new higher high. At the time of writing, DOGE trades at $0.2364, signaling renewed strength in the market.

Renewed Buying Pressure and Trend Reversal Confirmed by Expert Analysis

Analysis by Trader Tardigrade highlights that the breakout occurred on July 26 after multiple failed attempts earlier in the week. The previous resistance now acts as support, confirming a bullish shift. This move ended a three-day consolidation phase following a retracement to $0.23 on July 25, supported by increased buying activity.

Dogecoin confirms a bullish trend reversal after breaking a descending trendline, with rising volume and eyes set on $0.29 resistance.

• Dogecoin breaks trendline and forms higher high, ending lower highs pattern since July 22.
• On-chain volume rises 15% in a week, reflecting renewed trader interest after breakout.
• DOGE eyes $0.29 as price stays above 20- and 50-day SMAs but under short-term resistance.

Dogecoin (DOGE) has moved above a descending resistance trendline on the 1-hour chart, indicating a shift in short-term momentum. The breakout was confirmed as DOGE established a new higher high (HH), ending the pattern of lower highs that had persisted since July 22. At the time of writing, Dogecoin was trading at $0.2364.

On-Chain Volume Surge Highlights Growing Trader Interest

Data from BitGuru reveals a 15% increase in Dogecoin’s on-chain transaction volume over the past seven days. This surge in activity aligns with the recent price breakout, indicating that traders are actively responding to the bullish momentum. Increased volume often precedes sustained price moves, reinforcing the positive outlook for DOGE.

What Are the Key Technical Indicators for Dogecoin’s Current Trend?

Dogecoin’s technical indicators show a mixed but cautiously optimistic picture. The Relative Strength Index (RSI) stands at 60.46, indicating neutral momentum with potential for upward movement. The Moving Average Convergence Divergence (MACD) histogram shows slight weakness at -0.0005, but the price remains above the 20- and 50-day Simple Moving Averages (SMAs), supporting medium-term bullishness.

How Does Short-Term Resistance Affect Dogecoin’s Price Action?

Despite the bullish trendline breakout, DOGE faces short-term resistance below the 7-day SMA, currently around the $0.25–$0.27 range. Breaking and sustaining above this zone is critical for testing the next resistance level at $0.29. Market analysts are closely monitoring this range for signs of further upward momentum or potential consolidation.

Frequently Asked Questions

What factors contributed to Dogecoin’s breakout above the descending trendline?

Dogecoin’s breakout was driven by sustained buying pressure that ended a pattern of lower highs, combined with a 15% rise in on-chain transaction volume, signaling renewed trader interest.

How does Dogecoin’s current RSI level affect its price potential?

With an RSI of 60.46, Dogecoin remains in neutral territory, suggesting there is room for further upward movement without being overbought, supporting continued bullish momentum.

Key Takeaways

• Trendline Breakout: Dogecoin broke a descending trendline, ending a series of lower highs since July 22.
• Volume Increase: On-chain transaction volume rose by 15%, reflecting growing trader interest.
• Resistance Levels: DOGE faces short-term resistance near $0.25–$0.27, with $0.29 as the next key target.

Conclusion

Dogecoin’s breakout above the descending trendline and increased on-chain volume confirm a bullish trend reversal. While technical indicators show mixed signals, the medium-term outlook remains positive as DOGE trades above key moving averages. Traders should watch the $0.25–$0.27 resistance zone closely for signs of sustained momentum toward $0.29. COINOTAG will continue to monitor developments and provide expert insights.