Dogecoin (DOGE) Bounces Off Key Support – Could a Breakout Resume the Uptrend?

Date: Sun, March 02, 2025 | 02:17 PM GMT

The cryptocurrency market shows signs of recovery as March begins, following significant corrections since November's rally. February saw intensified selling pressure, with sharp declines frequently occurring at the start of each week. However, market sentiment appears to be shifting, with Dogecoin (DOGE), a popular memecoin, exhibiting resilience. After bouncing off a key support level, DOGE's monthly decline has narrowed to 39%, fueling speculation of a potential breakout.

Source: Coinmarketcap

Falling Wedge Formation

Crypto analyst @JohncyCrypto notes DOGE is consolidating within a falling wedge pattern on higher timeframes. This pattern emerged after the price was rejected from its December 8th high of $0.48. The wedge suggests diminishing selling pressure, potentially foreshadowing a bullish reversal.

(Note: The 3D chart reference has been removed as it's visually dependent and not easily replicated in text format.)

DOGE's recent bounce off the lower wedge support, recovering from $0.18 to its current price of $0.20, is encouraging. Continued bullish momentum could test the descending resistance, with a breakout potentially triggering a strong recovery.

Key Levels to Watch

Sustained momentum could push DOGE to test the descending resistance and break out of the falling wedge. A successful breakout might lead to price targets including:

• $0.445
• $0.230
• $0.287
• $0.340

Analysts highlight that a similar falling wedge breakout in September resulted in a +350% rally, suggesting a potential repeat if market conditions remain favorable.

Final Thoughts

Dogecoin (DOGE) has rebounded from key support, and early bullish signals are present. However, traders should closely monitor market reactions in the coming days, particularly on Monday, given February's pattern of early-week sell-offs.

While a breakout is possible, caution is advised. Market participants should await confirmation signals before assuming a sustained uptrend.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making investment decisions.