Dogecoin Recovers: Is the Bullish Breakout Coming?

Dogecoin Shows Recovery After Drop: Is a Bullish Breakout Near?

10 January 2026 at 19: 06

Reading time: 3 minutes

Dogecoin is at a crucial juncture, especially after a 3,2% daily decline. Despite this setback, there are signs of recovery. Analysts suggest this popular memecoin is preparing to reclaim a key resistance level lost during the corrections in the fourth quarter of 2025.

The start of 2026 was remarkable for Dogecoin, which saw a 21% increase from its opening price of $0,117. Amid a broader market recovery, the cryptocurrency reclaimed a key price area, reaching an eight-week high of $0,156 this week. This is particularly noteworthy considering the largest memecoin by market capitalization had fallen more than 50% from its peak in the second quarter of 2025 and had been in a downtrend until last week.

Trader Tardigrade, a prominent market observer, pointed out the presence of Tweezer candlesticks on the monthly chart, which could indicate a potential bullish reversal. He noted that DOGE "has recovered almost all of its losses from the past month in just eight days," indicating a clear buildup of bullish momentum. The analyst also noted that DOGE has broken a bullish pattern and is now showing strong rallying.

Based on technical analysis, the cryptocurrency formed a three-month descending wedge on the three-day chart. The recent price increase has broken the upper edge of this pattern, suggesting an initial jump to $0,140 to $0,150. Interestingly, DOGE exhibited a similar increase during its 2024 rally, moving within a multi-month descending wedge before launching a strong rally.

If DOGE repeats its previous performance, the price could briefly fall back to test the breakout point as support before the next significant increase. The analyst added that after breaking the daily trendline, the cryptocurrency appears to be forming a bullish pennant on the daily chart. A breakout from this pattern could lead to a 40% increase towards the $0,20 level, which was lost during the attacks in the early fourth quarter. However, it is essential that DOGE closes the day above the $0,142 level to maintain this formation.

Is the DOGE Rally in Danger?

Despite this optimistic outlook, analyst Ali Martinez argues that Dogecoin is "hanging by a thread." In a recent post, he emphasized that the cryptocurrency is positioned in a crucial support zone between its local lows of $0,118 and recent highs. If the memecoin's momentum doesn't hold and the price breaks this key zone, it could result in a pullback of over 40%. According to the UTXO Realized Price Distribution (URPD) metric Martinez cites, the next major support zone is around $0,073, an area where over 28 billion DOGE tokens have previously traded.

Additionally, the analyst pointed out that the cryptocurrency's price appears poised to retest the $0,08 level after breaking out of a multi-year ascending channel. The chart shows that Dogecoin has traded within an ascending channel since 2023. However, the corrections at the end of 2025 caused the memecoin to fall below the lower boundary of this channel, which could be a worrying indicator for the price if the long-term bearish momentum persists.

Frequently Asked Questions

What are the key support and resistance levels for Dogecoin?
The main support for Dogecoin currently lies between $0,118 and $0,073, while the crucial resistance is found around the $0,20 level.

How is the market reacting to Dogecoin's recent price movements?
The market has reacted with significant bullish momentum to the recent price increase, but there are concerns about a potential pullback if support does not hold.

What can investors expect from the price development in the coming weeks?
Investors can expect a consolidation in DOGE's price, with the focus on holding support and further building momentum for a potential jump to higher levels.

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