Dogecointhe largest dog-themed coin, has notably benefited from the growing momentum in the broader crypto market, leading to substantial gains over the past few days. As the crypto market rebounds, DOGE has demonstrated price movements and trends that spark the potential for a major rally in the near term.
Bullish signs for Dogecoin after retest
Looking at the recent price action of Dogecoin, the meme coin has undergone a major movement which portends an imminent recovery shortly. Market Expert and Investor Trader Tardigrade underlines the development in a recent analysis on the X platform (formerly Twitter), capturing the attention of the community.
Specifically, DOGE managed to break out of a descending triangle formation, sparking new optimism among investors about a possible move to higher levels. The breakout confirms the strength of support levelwhich increases the likelihood of short-term bullish momentum.
According to Trader Tardigrade, Dogecoin has broken out of the uptrend from the bottom, reflecting a resurgence towards its upward trajectory. As a result, the expert is convinced that the chart pattern could lead to a subsequent explosive increase in the price of DOGE, possibly up to a new absolute record.
![Dogecoin](https://bitcoinist.com/wp-content/uploads/2025/01/Dogecoin-chart-from-Trader-Tardigrade.jpg?resize=449%2C420)
Given the growing positive market sentiment, Dogecoin could attract a wave of old and new investors, which could trigger a near-term rally. In the meantime, this early decision could pave the way for a broader view of Dogecoin’s rise. $1 Milestone in the current cycle.
It should be noted that Dogecoin’s exit from a descending triangle pattern comes before a retest of a critical chart pattern. Tardigrade Merchant quoted a full retest of the Broadening Wedge formation, fueling optimism about an imminent rally.
Typically, wedge widening has been a harbinger of substantial growth. This is a key chart pattern that indicates high price volatility and possible trend reversals. Trader Tardigrade highlighted the retest as classic bullish price action ahead of a notable rise to new highs.
As DOGE shows upside potential, investors and traders are closely monitoring key support and resistance levels in order to navigate the coinThis is the next major step. Given the similarities between recent price action and past trends, Dogecoin’s path to a new high is likely.
Will January be a bullish month for DOGE?
Since the beginning of the month, DOGE has seen impressive gains and positive investor sentiment. Looking at past price movements in January, the meme coin could see prolonged gains in the coming days.
IC News, looking at DOGE’s monthly performance, note This month of January was above all a pivotal month for Dogecoin. Over the previous 10 years, the meme coin averaged an exceptional return of 83.9% during the month.
However, the entire month of January was not optimistic for DOGE. Over the past January 11, Dogecoin has only seen positive returns 5 times, with the median result being a loss of 3.86%.
Featured image from Unsplash, chart from Tradingview.com