Dogecoin Gears Up for Major Recovery as Bullish Momentum Grows – Here’s What to Target

Dogecoin (DOGE) is striving to maintain a critical support level following a 3.2% decrease over the last day. An analyst has pointed out that the popular memecoin is poised to regain a key resistance level that was lost during the market pullbacks in Q4 2025.

Key Takeaways

Dogecoin has experienced a 21% price surge since the start of the year, reaching $0.156 recently.
Technical indicators suggest a potential bullish reversal, highlighted by Tweezer candlestick patterns.
A breakout from the current bullish pennant could result in a 40% move towards the $0.20 level.
Analyst warns that if DOGE falls below the $0.118 to $0.142 support zone, it could face a significant price retracement.

Dogecoin, DOGE

The Momentum Behind Dogecoin in Q1

Dogecoin has kicked off the year with impressive momentum, recording a 21% increase from its opening price of $0.117. Amid a recent market recovery, it reclaimed an important price area, hitting an eight-week peak of $0.156 on Tuesday.

Despite a significant retracement of over 50% from the highs seen in Q2 2025, Dogecoin was on a downward trend until last week’s price breakout. Market observer Trader Tardigrade noted the appearance of Tweezer candlesticks on the monthly chart, which could indicate a bullish reversal in progress.

Dogecoin

According to the analyst, DOGE “has nearly recovered last month’s losses in just 8 days,” showing that “a bullish momentum is clearly building up.” Recently, it was highlighted that DOGE broke out of a bullish pattern, exhibiting strong upward momentum.

The chart analysis reveals that the cryptocurrency demonstrated a three-month falling wedge pattern on the three-day chart. Following a surge in price, Dogecoin successfully broke above this pattern’s upper boundary, indicating an initial target range of $0.140 to $0.150.

Trader Tardigrade also mentioned that DOGE showed a similar pattern during its rally in 2024, moving within a multi-month falling wedge before breaking out and enjoying substantial gains. If it follows this precedent, the price may temporarily drop to retest the breakout area as support before the next significant upward push.

He added that after breaking out of the daily trendline, DOGE seems to be forming a bullish pennant on the one-day chart, and a breakout from this configuration may lead to a potential 40% increase, targeting the $0.20 area, which was lost during early Q4 pullbacks. However, for this formation to hold, DOGE must close the day above the $0.142 level.

Is DOGE’s Rally at Risk?

Even with the bullish expectations, analyst Ali Martinez warned that Dogecoin is “hanging by a thread.” In a post from Thursday, he stressed that the cryptocurrency is trading within a critical support zone, specifically between local lows of $0.118 and recent highs.

Should the momentum of the memecoin falter and the price drops below this critical zone, there is a risk of more than a 40% retracement. According to the UTXO Realized Price Distribution (URPD) metric mentioned by Martinez, the next significant support lies around $0.073, where over 28 billion DOGE tokens changed hands previously.

Martinez pointed out that DOGE's price trajectory appears to be heading towards the $0.08 level after breaking through a multi-year ascending channel. Historical data shows Dogecoin has been trading within an ascending channel on the three-day chart since 2023. However, corrections in late 2025 caused it to slip below the lower boundary of this channel, raising concerns for its future price if bearish momentum persists.

As of now, Dogecoin is trading at $0.142, reflecting a 14.55% increase over the weekly timeframe.

Dogecoin Performance on the Weekly Chart

Source: DOGEUSDT on TradingView