Expert Shares What’s Next as Dogecoin Retests 146-Day Ascending Channel Following Breakout

Dogecoin (DOGE) is currently retesting a multi-month resistance trendline, and its success could pave the way for a rally to higher prices.

For context, analyst Trader Tardigrade noted that Dogecoin is retesting a strong resistance zone from which it emerged recently. The healthy correction has seen DOGE retrace 10% from its Monday high of $0.288, with a broader market bearish momentum also enabling the sideways trend.

Necessary Correction Before Further DOGE Rally

Trader Tardigrade suggested that the channel retest was bullish for Dogecoin, as it would spur further upside trends. Nonetheless, it has to hold above and rebound from the former resistance trendline for this foray.

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Meanwhile, the size of the channel further fuels optimism that it would spark a massive parabolic expansion for Dogecoin. For perspective, Dogecoin entered this ascending channel on February 24 following a 13% dump. After dropping into the channel, it traded within it for 146 days before the recent breakout.

Notably, when it traded within the channel, the upper resistance suppressed its bullish momentum and hindered attempts to break free on May 11 and 23. However, now that it has finally breached the resistance following its 38% rally last week, Tardigrade expects a strong northward drive after the retest.

An accompanying chart shows a possible rally to reclaim December’s price high of $0.484. From the current price of $0.26, this would culminate in an 86% surge. It would also mark a 238% surge for those who bought Dogecoin at its lows of $0.143 in June at a time when others panicked.

Dogecoin Fear and Greed Supports Retest

Interestingly, Dogecoin moved further into the “Extreme Greed” territory, a Doge Fear and Greed Index community account shared today. The meme coin has a score of 80, signalling high optimism among market users, but with a cautionary note.

For context, such high scores connote an aggressive interest among market users, spurred by the sentiment that prices would continue their upward trend. However, the score also warns that the market might be saturated or overheated, and a possible correction could be imminent.

This aligns with the current corrective trend seen in the price of Dogecoin. Nonetheless, as Trader Tardigrade earlier mentioned, a successful retest could spark a bullish shift and another round of price growth.

Notably, earlier analyses also support this sentiment, with one predicting a DOGE rally to a new all-time high of $0.85, while another suggests higher prices, such as $1.46 and $4. Meanwhile, CryptoELITES claims that anyone who does not expect a Dogecoin price of $5 this cycle does not “know anything.”