Dogecoin (DOGE) Rebounds From Broadening Wedge Support: Is a Recovery Ahead?

Dogecoin (DOGE) Shows Signs of Recovery after Correction

Date: Saturday, February 15, 2025 | 11:22 AM GMT

The cryptocurrency market has witnessed a recovery in major memecoins this week, as Bitcoin's dominance has declined by 2.06% to 60.66% within the past seven days. This indicates a potential resurgence for altcoins and memecoins.

Dogecoin (DOGE), the leading memecoin, has demonstrated bullish momentum with significant gains over the last week. DOGE is on track for a reversal following a correction of over 26% during the previous 30 days.

Broadening Wedge Setup

DOGE's daily chart displays an impressive rally of over 800% from October to early December, rising from $0.10 to a peak of $0.48 on December 8. Since then, it has consolidated within a Broadening Wedge pattern, known for potential breakouts in either direction.

DOGE has tested both the upper resistance and lower support of the wedge consistently. The recent decline retested the lower boundary at $0.20, a crucial support level, from which it has rebounded strongly.

Presently, DOGE trades around $0.2769, supported by the 200-day SMA. In line with the pattern, it is approaching its next resistance at the 25-day SMA. A breakout above this level would confirm bullish momentum, potentially leading to a recovery towards the wedge's upper resistance near $0.38.

The MACD indicator signals a potential bullish crossover, with the MACD line gradually rising above the signal line. This suggests decreasing selling pressure and potential dominance by buyers. Volume confirmation is essential for a strong breakout signal.

Recovery Prospects

While DOGE has rebounded from its support, upcoming trading sessions are pivotal in sustaining its upward momentum.

The broader market trend, including Bitcoin's dominance and overall sentiment, will significantly impact DOGE's price movement. If Bitcoin remains stable or bullish, DOGE and other altcoins may continue their recovery phase.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.