Dogecoin is showing fresh signs of life after a monthly TD buy signal appeared and price broke out of a multi-week descending channel. If buyers hold the breakout zone, DOGE could move from weak recovery attempts into a stronger reversal setup.
Dogecoin Monthly Chart Flashes TD Buy Signal as Bulls Watch for Reversal
Dogecoin may be showing an early sign of a trend shift after printing a TD buy signal on the monthly chart, a setup that traders often watch for potential reversals after extended weakness.
DOGE monthly chart. Source: Ali Charts on X, TradingView.
The chart shared by Ali Charts shows DOGE in a long decline from higher levels, with price spending several months pressing lower and forming a stretched bearish structure. Near the latest candles, the chart marks a “9,” which represents a TD Sequential buy signal.
That signal matters because the TD Sequential indicator is designed to identify exhaustion in a trend. When it appears after a prolonged move lower, traders often read it as a warning that selling pressure may be fading and that a bounce or broader reversal could begin.
The main level on the chart sits near the recent low area around $0.0779. If DOGE can hold that zone, the buy signal could strengthen the case for a recovery attempt from monthly support.
However, the signal does not guarantee an immediate breakout. DOGE would still need follow-through from buyers and a stronger move back into higher price zones before the bullish case becomes more convincing.
For now, the monthly TD buy signal is the key takeaway. After a long stretch of weakness, Dogecoin may be entering an area where bears start losing control and bulls begin looking for a larger reversal.
Dogecoin Breaks Out of Descending Channel as Reversal Hopes Build
Dogecoin has broken above a multi-week descending channel on the 4-hour chart, a move that may signal a short-term trend reversal after a long stretch of lower highs and lower lows.
The chart shared by Crypto Coral shows DOGE trading inside a downward-sloping channel through much of June before pushing through the upper trendline in early July. That breakout suggests selling pressure may be easing as buyers begin to regain control.
DOGE/USDT 4-hour chart. Source: Crypto Coral on X, TradingView.
Price also moved back toward the horizontal level marked near 1 on the Fibonacci extension scale, which sits around the mid-$0.07 range. If DOGE can hold above the broken channel, that area could start acting as near-term support.
The next upside levels on the chart are the 1.618 extension near $0.082, followed by higher resistance zones around $0.088, $0.095 and $0.100. Those are the main levels traders may watch if momentum continues to build.
However, the breakout still needs follow-through. If DOGE falls back inside the channel, the bullish reversal case would weaken and put the recent low area near $0.070 back in focus.
For now, the channel break is the main technical shift. After weeks of steady decline, Dogecoin may be starting to form a more constructive short-term structure.
