As market volatility sends Dogecoin (DOGE) to retest its breakout level, some analysts have advised “cautious” optimism for the leading memecoin, arguing that weak bullish momentum could invalidate the recent price action.
‘Optimism With A Seatbelt On’Notably, DOGE broke out of a one-month descending trendline after last week’s price surge, igniting optimism among investors. However, the market’s volatility has halted the leading memecoin’s momentum, which is now moving sideways within its local range.
“We’ve seen this play out twice before with massive bounces. (…) If this horizontal support holds, the risk/reward for a long position here is insane,” he affirmed, adding that a rebound from this level could target the $0.15-$0.20 area.
As he explained, the descending trendline has been retested and held as support over the past five days, printing daily closes above the breakout level. This signals that the structure remains bullish.
Despite this, the analyst considers the rally “feels a bit underpowered” and that DOGE’s uptrend momentum “is lacking strength” as the price is slowly retracing the recently climbed levels.
“Price has to attract real demand to make this breakout credible. Keep an eye on volume and punchier candles—until those show up, it’s optimism with a seatbelt on,” he asserted.
Dogecoin To Repeat Previous Performances?The analyst emphasized that historically, “when DOGE finishes building these bases, it doesn’t take long before the breakout happens.” Now, the cryptocurrency is at the edge of the third base, with the “same prolonged consolidation, same gradual accumulation, same compressed energy.”
Notably, the cryptocurrency saw a 95x move between 2017 and 2028 after breaking out of its macro consolidation range. Then, it recorded a 310x rally toward its latest all-time high (ATH) following its 2020 breakout.
As of this writing, DOGE is trading at $0.097, a 1.1% decline in the daily timeframe.
