A key technical development on the Dogecoin (DOGE\/USD) chart could hint at a bullish move if current support levels hold, according to crypto market analyst Kevin (@Kev_Capital_TA). After roughly a month in a downward-sloping pattern, DOGE appears to be rebounding off the former resistance line of this channel\u2014an event that often garners attention among traders looking for an upswing.<\/p>\n
On Sunday (Jan 19), Kevin noted<\/a> that Dogecoin had been \u201ctrading in a falling channel for over a month\u201d and was \u201ccurrently back testing\u201d the channel\u2019s upper boundary. He emphasized that it was crucial for DOGE \u201cto hold this and bounce,\u201d noting that failure to do so might force a \u201creassessment\u201d of the chart.<\/p>\n Thus far, it seems the cryptocurrency is managing to defend its newfound support. DOGE briefly dipped to about $0.345 before closing two deep wick four-hour candles back above the trend line. Kevin pointed out this \u201cnice bounce off the retest\u201d and its alignment with key four-hour moving averages, suggesting the potential for higher prices.<\/p>\n At press time, Dogecoin sits around the $0.38\u2013$0.39 level, showing resilience at its former resistance-turned-support. Kevin noted: \u201cDogecoin is catching a nice bounce off the retest<\/a> of the falling channel I have been tracking along with its key 4HR moving averages. Very nice.\u201d<\/p>\n Despite Dogecoin\u2019s promising technical setup, Kevin stressed that altcoins remain heavily dependent on Bitcoin\u2019s direction and market dominance. He referred to the ongoing crypto cycle, asserting that \u201cwe have never been in an altseason\u201d so far in this bull run. According to Kevin, altcoins will not \u201cdurably outperform the King\u201d unless BTC dominance falls below the 54.51% threshold and USDT dominance sinks beneath 3.7%.<\/p>\n