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Dogecoin (DOGE), the world’s largest meme coin, is completing a significant technical break on the daily timeframe, sparking renewed optimism amongst analysts. Following weeks of consolidation and price declines, Dogecoin has finally broken out of a long-standing downtrend, opening the door for a potential rally toward the next support zone between $0.42 and $0.43.
Dogecoin Daily Trend Break Sets Stage For Major Upside
According to Bitcoinsensus on X (formerly Twitter), the Dogecoin price action is showing a clear daily trend break opportunity, signaling a potentially strong move upward to a new support range between $0.43 and $0.42. After experiencing a healthy and controlled price pullback, Dogecoin appears to be preparing for a fresh breakout, which the analyst forecasts could occur within the next seven days.
Notably, this immediate daily trend break is supported by a larger technical formation: a well-defined Inverse Head and Shoulder pattern. Bitcoinsensus’s chart shows that Dogecoin formed this distinctive technical pattern between March and May 2025.
Looking at the chart, DOGE’s Inverse Head and Shoulder structure consists of three major price dips: the left shoulder, which formed in March, the deeper head in April, and the right shoulder, which was completed in early May. This formation collectively signals that Dogecoin’s market sentiment may be shifting from bearish to bullish.
Source: Bitcoinsensus on X
The key resistance area, referred to as the neckline of the Inverse Head and Shoulder, has already been broken, confirming the pattern. The breakout above the neckline in early May marked the start of Dogecoin’s broader trend reversal after months of downtrend and consolidation.
After breaking out of the neckline, Dogecoin executed a textbook retest, confirming its bullish setup. Adding to the positive momentum, the meme coin also decisively broke above a descending trendline that has acted as resistance since late 2024. This price has since formed a higher low on the chart, indicating that buyers are defending this area.
Bitcoinsensus has revealed that Dogecoin’s next key resistance area lies between $0.42 and $0.43 — a former supply zone where sellers had pushed prices down. If the meme coin’s price can rise toward this level with substantial volume, the analysis suggests that it could trigger a fast and sustained rally to new highs.
DOGE Set For Momentum Boost Toward $0.26
The Dogecoin price is currently showing signals of a potential rally as bullish momentum picks up. The popular meme coin, which is currently trading at $2.3, is approaching a critical resistance level at $0.239, according to a technical analysis by prominent crypto analyst Ali Martinez.
If the price successfully breaks past this resistance level, Martinez predicts that it could open up a path to a sharp rally toward the next target zone, around $2.51, before it reaches the $0.265 level. While the analyst remains optimistic about DOGE’s bullish outlook, he also cautions that a break below the resistance could lead to a pullback toward the support levels around $0.227, $0.221, and $0.215.
DOGE trading at $0.22 on the 1D chart | Source: DOGEUSDT on Tradingview.com
Featured image from Getty Images, chart from Tradingview.com
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