Dogecoin Breakout Faces Momentum Test

In Brief

• DOGE holds above a key trendline after breakout and retest.
• Structure remains bullish, but momentum is weak.
• Traders watching volume and strong candles for confirmation.

Dogecoin (DOGE) is holding above a key descending trendline after a recent breakout and successful retest. The daily chart shows structure remaining bullish, but momentum appears weak with limited buying pressure. Traders are now watching volume and candle strength for confirmation of a sustained move higher.

Dogecoin Structure Holds After Breakout

As it happens, DOGE may still be structurally bullish despite recent hesitation, according to fresh technical analysis of the daily chart, shared by prominent cryptocurrency trading expert Trader Tardigrade in an X post on February 17.

*Dogecoin’s trendline back tested. Source:* *Trader Tardigrade/X*

The meme coin recently broke above a descending trendline and has since retested the level, which is a classic breakout confirmation pattern in technical analysis. So far, the price remains above that trendline, keeping the broader structure intact.

Breakouts followed by successful retests often signal a potential trend reversal or continuation higher.

Why The Trendline Matters

Descending trendlines typically act as resistance during downtrends. When price breaks above them and holds support during a retest, it can signal a shift in market structure, early bullish reversal signals, increased buyer control, and a possible new uptrend forming.

From a structural standpoint, Dogecoin still appears to be trading within this bullish framework.

Indeed, Dogecoin is at the moment trading at $0.1001, up 0.6% on the day, advancing 7.7% over the week, amid a 26.7% decline across the month.

*Dogecoin price 7-day chart. Source:* *CoinGecko*

The Missing Piece: Momentum

Despite the positive structure, analysts note that momentum remains weak. Price action following the retest has lacked strong follow-through, suggesting buyers have not yet fully stepped in to drive a sustained move higher.

Signs of weak momentum can include smaller candles, low trading volume, choppy price action, and failure to expand quickly after breakouts. Without stronger momentum, breakouts can stall or even fail.

What Traders Should Watch Next

For bullish confirmation, traders will likely be monitoring rising volume levels, larger bullish candles, higher highs forming on lower timeframes, and sustained closes above the trendline.

A surge in buying pressure could validate the breakout and potentially trigger a stronger rally. On the flip side, a loss of the reclaimed trendline would weaken the bullish structure and open the door for renewed downside pressure.

The current setup leaves DOGE at a technical crossroads. Structurally, the breakout remains valid. But without stronger participation from buyers, the move lacks conviction.

For now, the outlook appears cautiously optimistic, with the next decisive signal likely coming from volume and momentum expansion.

Bottom Line

Dogecoin is holding above a key descending trendline, keeping its bullish structure intact after a recent breakout and retest. However, weak momentum suggests the move still needs confirmation. Traders will be watching for stronger volume and price expansion to validate the next trend.