Dogecoin Flashes Bullish Signals as Key Resistance Falls

Dogecoin is displaying a technical setup strikingly similar to the one that preceded its explosive 2020-2021 bull run. The cryptocurrency has broken out from a multi-year downtrend, successfully retested that breakout level, and is now showing renewed momentum with its monthly RSI crossing above 50. This combination of factors has historically signaled the beginning of significant price appreciation for DOGE.

Technical Setup Mirrors Historical Cycles

Recent analysis by Ether NasyonaL shows Dogecoin "reaffirming its historical cycle" on monthly charts. The current price action closely resembles conditions before the 2020-2021 rally, when DOGE reclaimed its 25-month moving average (25MA) while RSI decisively crossed above 50, triggering a parabolic uptrend. Trading around $0.19, DOGE is consolidating above the 25MA after breaking and successfully retesting a long-term falling trendline.

The multi-year downtrend has been breached to the upside, and DOGE has held support at the confluence of the trendline and 25MA during its retest. This technical structure mirrors the 2020 setup that preceded massive price expansion.

Key Price Levels to Watch

Support sits at the 25MA around $0.18, with a monthly close below this level potentially signaling weakness. The first resistance zone appears at $0.25-$0.28, where previous selling pressure capped rallies. Beyond that, the $0.32-$0.36 range represents the last cluster of lower highs. Breaking above this level would open the path toward $0.45-$0.50, with potential for even higher targets in a full parabolic cycle.

The monthly RSI crossing back above 50 suggests renewed bullish momentum. Historically, when DOGE trades above the 25MA with RSI above 50, strong rallies often follow as retail interest and liquidity flow into memecoins.

Crypto market sentiment has improved as Bitcoin stabilizes and capital rotates into altcoins. Memecoins typically outperform later in market cycles once broader uptrends gain momentum. DOGE's history of social-driven hype and potential adoption in payments could provide additional catalysts.

However, a sustained move below $0.18 would weaken the bullish outlook and suggest a deeper pullback toward $0.15-$0.16. Macro uncertainty or spikes in Bitcoin dominance could also slow DOGE's upward momentum.