Will Dogecoin Skyrocket Soon? Chart Pattern Suggests Yes
Cryptocurrency market analyst Kevin (@Kev_Capital_TA) says key technical developments on the Dogecoin (DOGE/USD) chart could hint at a bullish move if current support levels hold. After being in a downward sloping pattern for about a month, DOGE appears to be bouncing off the channel’s former resistance line, an event that often draws the attention of traders looking to move higher.
Is Dogecoin price ready to surge?
Sunday (January 19), Kevin famous Dogecoin has been “trading in a descending channel for over a month” and is “currently backtesting” the channel’s upper limit. He emphasized that it is crucial for Dogecoin to “hold this and bounce back,” noting that failure to do so could force a “re-evaluation” of the chart.
So far, the cryptocurrency seems to be managing to defend its newfound support. DOGE fell as low as around $0.345 before closing back above the trendline with two deep-wicked four-hour candles. Kevin noted that this “nice bounce off the retest” and its alignment with the key four-hour moving average suggests price gains are likely.
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At press time, Dogecoin was trading around the $0.38 to $0.39 levels, showing resilience from former resistance to support. Kevin noted: “Dogecoin is moving from Retest I have been tracking the descending channel and its key 4-hour moving average. very nice. “
Although Dogecoin’s technical setup is promising, Kevin emphasized that the altcoin is still heavily dependent on Bitcoin’s direction and market dominance. He referenced the ongoing cryptocurrency cycle and claimed that “we have never been in an altcoin season” during this bull run so far. Kevin said that unless BTC’s dominance falls below the 54.51% threshold and USDT’s dominance drops below 3.7%, altcoins will not “persistently surpass King.”
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He also observed Bitcoin dominates Nearly 59%, effectively “attacking the macro gold pocket” and potentially threatening altcoin performance. Kevin believes that if BTC re-establishes its lead above these key dominance levels, the short-term outlook for most altcoins, including Dogecoin, may remain limited, even if their individual charts look constructive.
Another factor bringing turmoil to the cryptocurrency market is the recent Meme Coin Launched Incoming US President Donald Trump. Kevin lamented that in his opinion, the cryptocurrency market is the “healthiest” it has been in four years, highlighting how high-quality utility tokens are gaining traction and how investors seem to be “fleeing to quality left and right.” .
However, he claimed that “in just 36 hours,” those close to Trump released a meme coin, disrupting the dynamic, sparking new meme coin speculation and making many credible Projects dropped by double-digit percentages. Despite describing the frenzy as a “temporary derailment,” Kevin believes things will eventually stabilize: “It may take a few weeks, but I still think we’re in a really good place.”
For Dogecoin, the signal to watch immediately is whether it can continue to hold above the retested channel line. A decisive bounce above the $0.40-$0.41 area could enhance the bullish outlook, especially if broader market conditions remain favorable. On the other hand, any surge in Bitcoin dominance — and a potential resurgence of meme coin mania — could bring new headwinds.
At press time, DOGE was trading at $0.38.
Featured image created with DALLE, chart from TradingView.com
