The annotated daily candlestick timeframe chart shared with the analysis suggests that once Dogecoin clears the upper trendline of the descending channel, heavy upside momentum could drive it toward the $0.3 price zone. This level, previously a major support between December 19, 2024, and January 2, 2025, could now act as a critical resistance moving forward.
Keeping the descending channel structure in mind with current Dogecoin price levels, any confirmed breakout above $0.27 would serve as a strong bullish signal. The importance of the $0.27 price level was also noted by crypto analyst MMBTrader.
Such a breakout would not only mark the end of months-long consolidation but could also open the door for rapid upside momentum. However, until that breakout materializes, Dogecoin is still at risk of rejecting downwards again at the resistance trendline. On the other hand, the analyst highlighted the $0.205 and $0.180 zones as the closest support levels.
At the time of writing, Dogecoin is trading at $0.224, down by 1.4% in the past 24 hours.
