Dogecoin shows bullish signs as MACD contraction and trendline support hint at a breakout toward higher levels.
Dogecoin traders are closely watching the charts after new technical signals point toward a potential bullish continuation. With DOGE trading near $0.214, investors are assessing whether current support levels can sustain the push toward higher price zones.
MACD Contraction Signals Rising Momentum
Crypto trader Tardigrade observed that the 4-hour MACD on Dogecoin has started to contract, suggesting the beginning of an uptrend. This indicator is widely used to gauge momentum shifts, and contraction can point to a pause before a stronger directional move. If confirmed, this setup could reinforce buyers’ confidence in the short-term market structure.
At the same time, Whale Satoshi, another market analyst, stated on X that “DOGE is still showing a strong uptrend.” This aligns with technical patterns that are forming across different timeframes. Traders are now watching whether the price can hold above the rising trend line that has supported gains since early August.
Key Resistance and Breakout Levels
Tardigrade shared that a symmetrical triangle is developing on the 4-hour chart, where price action has tightened between support and resistance. He identified $0.23 as the breakout threshold, noting that a decisive move above this level could trigger a rally toward $0.25, $0.28, and possibly $0.30. His projection outlined a stepwise rise if volume supports the breakout.
Meanwhile, Dogecoin could rally by 800% toward $1.82 if Fibonacci extensions play out. He added that this could be followed by a sharp pullback toward $0.09. The analyst also identified multiple accumulation zones where long-term holders appeared to defend price stability during market corrections.
Support Levels and Market Structure
Dogecoin trades within a descending channel that began in mid-August, with price now near $0.214. Traders are closely watching the $0.212 to $0.214 zone, where a rising trend line meets the channel floor. A daily close below this level may open the path toward $0.206 or $0.200.
Moving averages show strong resistance overhead, with the 20-EMA near $0.216 and the 200-EMA around $0.221. These levels have repeatedly capped rebounds, keeping the short-term bias tilted to the downside. However, exchange data on September 1 showed $10.4 million in outflows, suggesting quiet accumulation that could support a future breakout.
Broader market trends also play a role in Dogecoin’s trajectory. CryptoKaleo, another analyst, noted that DOGE has recently outperformed Bitcoin on the DOGE/BTC pair. He suggested that a large upward move, often described as a “god candle,” could occur if momentum accelerates while Bitcoin remains under pressure.
