DOGE Breakout Confirmed? New Bullish Signal Emerges

TL;DR

• Dogecoin retests a descending trendline, confirms the breakout, and stabilizes above the $0.24 level.
• Hidden and regular bullish divergences emerge, strengthening Dogecoin’s short-term upward price setup.
• Active addresses decline, but price holds firm, signaling accumulation by larger and less active holders.

Dogecoin Retests Trendline and Holds Above Key Level

Dogecoin (DOGE) is showing a firm structure on the daily chart after retesting a descending trendline. The level, which previously acted as resistance, is now holding as support. The price bounced near $0.23 and has remained above that level through the latest sessions.

Meanwhile, this trendline has shifted from a ceiling to a floor, confirming the breakout. DOGE’s price stood at $0.242 at press time, marking a 2.5% gain in the past 24 hours. After pulling back from $0.27, DOGE is showing signs of holding its ground rather than slipping into a deeper retrace.

According to crypto analyst Trader Tardigrade, the daily RSI has confirmed a hidden bullish divergence. This pattern forms when the price makes a higher low while the RSI makes a lower low. It often indicates that the broader uptrend remains in place, despite weaker momentum.

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There is no sign of bearish divergence. RSI has also exited the overbought zone, giving DOGE space to move higher without resistance from stretched momentum. These signals suggest the current pullback may have been temporary.

Dual Divergences Appear on 4-Hour Chart

On the 4-hour chart, Dogecoin formed two bullish divergence patterns between July 24 and 26. The first was a hidden bullish divergence, followed by a regular bullish divergence. These were observed in the same price zone, adding to the case for a trend shift.

Price has moved higher since then. Buyers have stepped in near short-term lows, and the move above $0.24 confirms follow-through. The $0.22 level remains the main support in this setup.

Fewer Active Addresses, But Price Holds

Glassnode data shows Dogecoin’s number of active addresses has dropped to 58,688 as of July 27, down from over 100,000 in mid-July. Despite the lower activity, DOGE price remains steady above $0.24.

This suggests that fewer users are transacting, but larger holders may be stepping in. Crypto analyst Ali Martinez noted that DOGE is back in a zone that has triggered rallies before. A break above $0.25 could clear the way toward $0.36, where past moves have accelerated.