After weeks of decline and indecision, Dogecoin is facing a positive sentiment. The latest market recovery has lifted sentiment, and technical indicators now point toward a potential upside.

DOGE jumped 9% today (Tuesday) to a high of $0.1729. Ranked #8 on CoinMarketCap with a market capitalization of $25 billion, the meme coin is now up 10% in the past week, ahead of the TRON (TRX) token.

Technical Breakout Forms as Patterns Align

Technically, DOGE faces key resistance levels. Price is currently at the 200 moving average but below the 50 moving average levels. The Relative Strength Index (RSI) is above the neutral 50.

A move toward the $0.2031 resistance zone. This area remains a major hurdle, but if cleared, it could open the door to a broader upside channel. Despite the bullish structure, DOGE is stuck just below the $0.17 mark, a level that has repeatedly acted as both floor and ceiling.

Chart analyst Ali Martinez flagged this zone as critical, noting its alignment with the 78.6% Fibonacci retracement from Dogecoin’s 2021 bull run.

So far, DOGE has faced rejection at this threshold, slipping back slightly as volume failed to follow through. This lack of conviction has kept traders cautious, even as broader meme coin sentiment strengthens.

Broader Market Tailwinds Offer Support

DOGE’s rise coincides with a rebound in the crypto market. Bitcoin’s surge past $90,000 and renewed inflows into crypto ETFs have re-energized investor interest in high-beta assets, including other meme coins. Both rallied in tandem, with DOGE climbing 8% and SHIB gaining 6% during the latest recent upswing.

Still, risks remain. If Dogecoin fails to reclaim $0.17 convincingly, the chart setup could unravel.

Dogecoin has laid the technical groundwork for a potential breakout, but confirmation hinges on one key price level. Until DOGE reclaims $0.17 with conviction, its bullish outlook remains fragile.

Source: Finance Magnates