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According to crypto market analyst Kevin (@Kev_Capital_TA), a major technical development on the Dogecoin (DOGE/USD) chart could indicate a bullish move if current support levels hold. After being in a bearish pattern for about a month, DOGE appears to be recovering from this channel’s former resistance line – an event that often draws attention among traders looking for an upswing.
Dogecoin Price Poised to Skyrocket?
On Sunday (January 19) Kevin noted that Dogecoin “had been trading in a declining channel for over a month” and was “currently testing the upper limit of the channel.” He emphasized that it was critical for DOGE “to hold this and bounce back,” noting that failure to do so could force a “reassessment” of the card.
So far, it seems like the cryptocurrency is succeeding in defending its newfound support. DOGE briefly fell to around $0.345 before closing two deep four-hour candles back above the trendline. Kevin pointed to this “nice recovery on the retest” and its alignment with the major four-hour moving averages, pointing to the potential for higher prices.
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At the time of writing, Dogecoin is around the $0.38-$0.39 level, showing resilience from its previous support-turned-resistance. Kevin noted: “Dogecoin is making a nice recovery after the retest of the descending channel I have been following along with the main 4HR moving averages. Very nice.”
Despite Dogecoin’s promising technical setup, Kevin emphasized that altcoins remain heavily dependent on Bitcoin’s direction and market dominance. He referred to the ongoing crypto cycle, claiming that “we have never been in an altseason so far” in this bull run. According to Kevin, altcoins will not “sustainably outperform the King” unless BTC dominance falls below the 54.51% threshold and USDT dominance falls below 3.7%.
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He also noted that Bitcoin’s dominance was almost 59%, which effectively “attacked the macro golden pocket” and potentially threatened altcoin performance. If BTC re-establishes its lead above these critical dominance levels, Kevin believes the short-term prospects for most altcoins – including Dogecoin – could remain limited, even if their individual charts look constructive.
Another factor unsettling the crypto market is the recent launch of memecoins by incoming US President Donald Trump. Kevin lamented that in his opinion the crypto market was “the healthiest” he had seen in four years – highlighting how high-quality coins were gaining popularity and how investors seemed to be “fleeing to quality left and right.”
However, he claims that those close to Trump released a memecoin “in just 36 hours” that derailed this dynamic, fueling speculation about new meme coins and bringing down many solid projects by double digits. Despite describing this frenzy as a “temporary derailment,” Kevin believes the situation will eventually stabilize: “It may take a few weeks, but I still think we’re in a very good place.”
For Dogecoin, the immediate signal is to see if it can stay above its retested channel line. A decisive rebound above the $0.40-$0.41 region could strengthen the bullish situation, especially if broader market conditions remain supportive. On the other hand, any rise in Bitcoin dominance – and the possible return of heightened meme coin mania – could create new headwinds.
At the time of writing, DOGE was trading at $0.38.
Featured image created with DALLE, chart from TradingView.com
