An important technical development in the Dogecoin (DOGE/USD) chart could signal a potential bullish move if current support levels hold, as per crypto market analyst Kevin (@Kev_Capital_TA). After a period of decline, DOGE seems to be bouncing back from the former resistance line of the downward-sloping pattern, a development that often attracts traders looking for an upward trend.
Is Dogecoin Price Set to Soar?
On Sunday (Jan 19), Kevin observed that Dogecoin had been within a “falling channel for over a month” and was currently testing the channel’s upper boundary. He stressed the importance of DOGE holding this position and bouncing back, warning that a failure to do so could lead to a reassessment of the chart.
So far, the cryptocurrency seems to be successfully defending its newfound support. DOGE briefly dropped to around $0.345 before closing two deep wick four-hour candles above the trend line. Kevin highlighted this “good bounce off the retest” and its alignment with key four-hour moving averages, indicating the possibility of higher prices.
Currently, Dogecoin is hovering around the $0.38–$0.39 range, showing strength at its former resistance-now-support level. Kevin remarked: “Dogecoin is experiencing a positive bounce off the retest of the falling channel I have been monitoring along with its crucial 4HR moving averages. Very promising.”
Despite the optimistic technical setup for Dogecoin, Kevin emphasized that altcoins are closely tied to Bitcoin’s movements and market dominance. He referred to the current crypto cycle, stating that there hasn’t been a significant altseason yet in this bull market. Kevin believes that altcoins, including Dogecoin, will not consistently outperform Bitcoin unless BTC dominance falls below 54.51% and USDT dominance drops below 3.7%.
He also noted that Bitcoin dominance is approaching 59%, challenging the macro golden pocket and potentially impacting altcoin performance. If BTC regains dominance above these critical levels, Kevin thinks that most altcoins, including Dogecoin, may face limitations in the short term, despite positive individual chart patterns.
Another factor adding volatility to the crypto market is the recent memecoin launch linked to incoming US President Donald Trump. Kevin expressed concern that this launch disrupted the previously stable market conditions, causing a renewed interest in meme coins and leading to significant losses for many strong projects. Despite viewing this frenzy as a temporary setback, Kevin believes that stability will eventually return: “It may take a few weeks, but I still think we’re in a very good spot.”
For Dogecoin, the key indication to monitor is its ability to maintain its position above the retested channel line. A clear bounce above the $0.40-$0.41 range could strengthen the bullish scenario, particularly if overall market conditions remain positive. However, an increase in Bitcoin dominance and a resurgence of meme coin hype could introduce new challenges.
Currently, DOGE is trading at $0.38.
