As market volatility sends Dogecoin (DOGE) to retest its breakout level, some 
analysts have advised “cautious” optimism for the leading memecoin, arguing 
that weak bullish momentum could invalidate the recent price action. Related 
Reading: SUI Eyes Price Recovery As Institutional Exposure Expands With 
Grayscale, Canary ETF Launches ‘Optimism With A Seatbelt On’ On Thursday, 
Dogecoin fell to a one-week low of $0.095 before bouncing back above the 
$0.098 support level. The cryptocurrency has been hovering between $0.096 and 
$0.104 for the past six days, briefly reaching a multi-week high of $0.117 
during the weekend. Notably, DOGE broke out of a one-month descending 
trendline after last week’s price surge, igniting optimism among investors. 
However, the market’s volatility has halted the leading memecoin’s momentum, 
which is now moving sideways within its local range. Market observer Whale 
Factor highlighted that Dogecoin has returned to “the ultimate support level” 
located at $0.097. This level is a macro resistance-turned-support, serving as 
a key bounce area over the past two years. “We’ve seen this play out twice 
before with massive bounces. (…) If this horizontal support holds, the 
risk/reward for a long position here is insane,” he affirmed, adding that a 
rebound from this level could target the $0.15-$0.20 area. Meanwhile, analyst 
Trader Tardigrade noted the recent performance, explaining that the breakout 
and the subsequent retest of the downtrend line is “textbook bullish price 
action.” Nonetheless, he has warned that he is “cautiously optimistic” due to 
weak bullish momentum. As he explained, the descending trendline has been 
retested and held as support over the past five days, printing daily closes 
above the breakout level. This signals that the structure remains bullish. 
Despite this, the analyst considers the rally “feels a bit underpowered” and 
that DOGE’s uptrend momentum “is lacking strength” as the price is slowly 
retracing the recently climbed levels. “Price has to attract real demand to 
make this breakout credible. Keep an eye on volume and punchier candles—until 
those show up, it’s optimism with a seatbelt on,” he asserted. Dogecoin To 
Repeat Previous Performances? Trader Tardigrade also pointed out that Dogecoin 
seems to be mirroring the same pattern that has previously led to parabolic 
moves. Per the post, the memecoin has completed a “Solid Base structure” twice 
before, first in 2016 and then in 2020. The analyst emphasized that 
historically, “when DOGE finishes building these bases, it doesn&#8217;t take long 
before the breakout happens.” Now, the cryptocurrency is at the edge of the 
third base, with the “same prolonged consolidation, same gradual accumulation, 
same compressed energy.” Similarly, market watcher Bitcoinsensus observed that 
in past cycles, Dogecoin had “thrived during strong risk-on environments,” 
typically breaking out after long stretches of consolidation. Related Reading: 
BNB Chain’s AI Agent Ecosystem Surges As Crypto Markets Bleed Notably, the 
cryptocurrency saw a 95x move between 2017 and 2028 after breaking out of its 
macro consolidation range. Then, it recorded a 310x rally toward its latest 
all-time high (ATH) following its 2020 breakout. The chart shows that the 
altcoin could be near the end of its long consolidation period, and a 
parabolic move could begin in the next year. “If this cycle plays out like 
previous ones, Dogecoin may have room to push toward the $5 zone,” the analyst 
concluded. As of this writing, DOGE is trading at $0.097, a 1.1% decline in 
the daily timeframe. Featured Image from Unsplash.com, Chart from 
TradingView.com

Analyst ‘Cautiously Optimistic’ About Dogecoin As Price Rally Stalls

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