- Dogecoin forms a rising channel from April lows, with price rebounding off $0.17 support and targeting the $0.22 resistance level.
- Trading volume spikes during reversals, reinforcing DOGE’s bullish structure as momentum builds within the ascending price channel.
- A 110-day lag with M2 money supply hints at macro-driven support for DOGE’s climb, aligning with breakout signals on daily charts.
Dogecoin is showing strong signs of a bullish reversal as the price establishes a rising channel on the H4 chart. Currently trading near $0.18, DOGE has rebounded from support after bottoming at $0.13 in early April. This move comes after a three-month correction that followed its sharp rally toward $0.30 in December. Price action now oscillates between well-defined trendlines, with each bounce from lower support attracting fresh buyers. Consequently, market sentiment has shifted, signaling a potential continuation of the upward structure in the coming weeks.
Source: Trader Tardigrade
Rising Channel Offers Bullish Technical Outlook
The DOGEUSD 4-hour chart confirms the emergence of an ascending channel. This structure, visible since early April, features higher lows and higher highs. Each price rebound from the lower trendline has held above critical support at $0.17. Besides, increasing momentum shows buyers stepping in at every pullback. Hence, the rising pattern suggests a bullish outlook as long as DOGE remains inside the channel.
Additionally, trading volume has spiked during key reversals, reflecting renewed investor interest. The current position near the lower boundary offers an attractive risk-reward entry for traders. Resistance now lies near $0.22, where price could meet profit-taking. However, price structure remains intact, keeping bullish hopes alive.
Macro Trends Support Price Action Correlation
Moreover, a secondary analysis reveals a growing correlation between Dogecoin and global M2 money supply with a 110-day lag. This theory suggests a macroeconomic driver behind DOGE’s recent upward momentum. Notably, a comparative yellow indicator on the daily chart has surged since June. Despite some divergence, DOGE continues to mirror key parts of this indicator’s trajectory.
Source: KrissPax
The daily DOGEUSDT chart on Binance also shows a confirmed breakout from a descending channel in April. This breakout followed a consolidation triangle, marking the end of the bearish trend. Currently, DOGE trades between strong support at $0.17 and resistance at $0.18.
These zones have consistently influenced price direction. DOGE’s price structure indicates a market in transition. It now builds support above $0.17 after March’s sharp decline. Moreover, the rising volume and strong technical formations suggest growing bullish sentiment.
