Dogecoin (DOGE) is attempting to hold a crucial area as support after recording a 3.2% drop in the daily timeframe. Despite this, an analyst suggests that the leading memecoin is preparing to reclaim a key resistance level lost during the Q4 2025 pullbacks.<\/p>\n
Dogecoin has seen a remarkable<\/a> start to the year, recording a 21% jump from its yearly opening price of $0.117. Amid the recent market recovery, the cryptocurrency reclaimed a crucial price area and hit an eight-week high of $0.156 this Tuesday.<\/p>\n Notably, the largest memecoin by market capitalization had retraced more than 50% from its Q2 2025 highs and was in a downtrend until last week\u2019s price breakout. Amid this performance, market observer Trader Tardigrade highlighted a pair of Tweezer candlesticks on the monthly chart, which could suggest a bullish reversal is taking place.<\/p>\n DOGE \u201chas nearly recovered last month\u2019s losses in just 8 days,\u201d he explained, which signals that \u201cclearly, bullish momentum is building up.\u201d Notably, the analyst recently noted that DOGE has broken out of a bullish pattern, \u201cshowing strong upward momentum.\u201d<\/p>\n According to the chart, the cryptocurrency displayed<\/a> a three-month falling wedge in the three-day chart. Following the recent price surge, Dogecoin was able to breach the pattern\u2019s upper boundary, signaling an initial jump to the $0.140-$0.150 area.<\/p>\n The trader highlighted that the memecoin displayed a similar performance during his 2024 rally, moving within a multi-month falling wedge before breaking out and kicking off a remarkable performance.<\/p>\n If DOGE repeats its previous performance, the price could retrace briefly to retest the breakout area as support before the next major surge, the market watcher added. He also pointed<\/a> out that after breaking out of the daily trendline, the cryptocurrency appears to be forming a bullish pennant in the one-day chart.<\/p>\n A breakout from this pattern would lead to a 40% move toward the $0.20 area, lost during the early Q4 pullbacks. However, DOGE\u2019s price needs to close the day above the $0.142 area to hold the formation.<\/p>\n Despite the bullish outlooks, analyst Ali Martinez affirmed<\/a> that Dogecoin is \u201changing by a thread.\u201d In a Thursday post, the market watcher emphasized that the cryptocurrency is trading within a crucial support zone between the local lows of $0.118 and the recent highs.<\/p>\n If the memecoin\u2019s momentum doesn\u2019t hold and the price loses this key zone, it could risk a more than 40% retrace. According to the UTXO Realized Price Distribution (URPD) metric cited by Martinez, the next major support<\/a> is around $0.073, where over 28 billion DOGE tokens were previously exchanged.<\/p>\nDOGE\u2019s Rally In Danger?<\/h2>\n