A market analyst believes Dogecoin (DOGE) could break out, targeting a key resistance level of $0.2596. The price is showing steady recovery and consolidation, with technical indicators signaling upward momentum if support levels hold.
Dogecoin Price Shows Steady Recovery Amid Consolidation
Over the past week, Dogecoin has posted a modest gain of approximately 2.8%, indicating a slow but steady recovery. Despite this positive momentum, DOGE continues to face resistance in the upper $0.17 region. The price remains under pressure, but the chart signals potential for a breakout if it can hold above key support.
Double Bottom Pattern Signals Possible Breakout
Analyst Tom Tucker has identified a promising technical formation for Dogecoin. The daily DOGE/USDT chart reveals the emergence of a double bottom pattern, a classic reversal signal. This pattern has formed near a strong support level at $0.1467, an area where buyers have repeatedly entered the market.
The double bottom pattern consists of two key low points: the first occurred on April 7, 2025, when DOGE dropped to $0.1299 before rebounding to $0.25. The second bottom occurred on June 22, 2025, when the price reached $0.1437, followed by another recovery. These lows near the same support level highlight persistent buyer interest, adding confidence to the potential for a breakout.
RSI, MACD, and Whale Activity Strengthen Bullish Sentiment
Several key momentum indicators are supporting the bullish case for Dogecoin. The Relative Strength Index (RSI) has risen above 47 and is approaching the neutral 50 mark, suggesting that bearish pressure is weakening and momentum is shifting toward buyers.
The MACD indicator has shown a bullish crossover, with the MACD line surpassing the signal line, signaling upward momentum. On the blockchain, whale accumulation is increasing. Over the past 30 days, large DOGE holders have increased holdings by 0.34%, while smaller investors reduced their share by 2.59%. This shift towards whales is typically a bullish signal, suggesting strong hands are positioning for future gains.
Major Resistance Levels to Watch
The Dogecoin chart includes Fibonacci retracement levels from the macro low of $0.09242 to the previous peak of $0.48 seen in December 2024. These Fibonacci levels provide a roadmap for identifying critical zones of support and resistance. Currently, DOGE is trading just below the 0.786 Fibonacci level at $0.17640, which now acts as immediate resistance.
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The next key resistance is the double bottom neckline at $0.2596, aligned with the 0.618 Fibonacci level at $0.24233. A breakout above this range could lead to further gains, with the 0.5 Fibonacci level at $0.28864 and the 0.382 Fibonacci level at $0.33495 as following targets.
Dogecoin’s Path to $0.2596
According to Tucker, as long as Dogecoin holds above the key support level at $0.1467, the setup remains intact, and the path to $0.2596 remains open. With the current price at $0.1681, a rally of approximately 54.45% would be required to reach this level.
On-Chain Signals: UTXO Realized Price Distribution
An important on-chain signal supporting the bullish outlook is the UTXO Realized Price Distribution chart from Glassnode. This chart highlights price levels where large volumes of DOGE were last traded, helping identify key resistance zones where holders may be inclined to sell.
The largest accumulation of DOGE is at $0.0739, where 20.03% of the supply has been acquired. However, more immediate resistance is seen at $0.177 (8.94% of the supply) and $0.2069 (7.24%). Furthermore, a successful break above the $0.21 level could pave the way for higher targets, such as $0.36, where another 3.82% of DOGE was last transacted.
The technical setup for Dogecoin suggests that the price is on the verge of a potential breakout if it holds above key support at $0.1467. With bullish signals from RSI, MACD, whale activity, and the double bottom formation, Dogecoin could be heading toward its next major resistance at $0.2596. As the price approaches these key levels, traders and investors will closely monitor whether DOGE can break above resistance and establish a new bullish trend.
