Dogecoin (DOGE) Breaks Out of Three-Month Downtrend
Dogecoin (DOGE) has broken out of a three-month descending trendline that has defined its downtrend since January 2025. The move comes as technical indicators and volume data point to growing bullish sentiment among market participants.
Crypto analyst Trader Tardigrade flagged the breakout in a chart, noting that Dogecoin had finally broken above a descending resistance channel. The breakout suggests a shift in price momentum following a prolonged period of lower highs and declining support levels.
At the time of writing, Dogecoin is trading at $0.2033 after gaining 9.78% in 24 hours and 21.79% over the past week. The breakout is supported by a 41% increase in trading volume, indicating renewed interest in the asset.
Symmetrical Triangle Breakout Adds to Bullish Case
Chart analysis shows Dogecoin has formed a symmetrical triangle pattern—a structure typically associated with continuation or reversal moves.
The memecoin has broken out of this symmetrical triangle to the upside, which is often viewed as a bullish signal. These patterns typically form when a market is consolidating and can lead to sharp moves once the price breaks in either direction. In this case, the breakout has been upward, reinforcing the growing bullish sentiment.
In technical terms, Dogecoin is now trading above its 20-day exponential moving average (EMA), which currently sits at $0.18418.
This is typically viewed as a short-term bullish signal. However, the coin still remains below longer-term resistance levels, including the 50-day EMA at $0.21492, the 100-day EMA at $0.24454, and the 200-day EMA at $0.24076. Climbing above these levels will be important for confirming a long-term trend reversal.
Technical momentum is also building. The Relative Strength Index (RSI) has risen to 56.01, crossing the neutral 50 line. This suggests bullish momentum is picking up but has not yet reached overbought conditions.
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“House of Doge” Might Be The Fundamental Catalyst
Dogecoin’s breakout has also been driven by a new fundamental catalyst. A newly formed entity, “The House of Doge,” has launched a strategic reserve to support DOGE adoption as a payment method. The group purchased 10 million DOGE—worth around $1.8 million—to back this initiative.
According to the announcement, the reserve will aim to promote Dogecoin to merchants and corporate partners. The move is designed to build use cases beyond speculation and meme culture.
Market response to the news was positive. Other dog-themed memecoins like Shiba Inu (SHIB) and Floki also surged 10% in the past 24 hours.
