Dogecoin is showing early signs of a trend reversal after months of compressed price action. A breakout through key resistance and strong technical confirmation suggest the meme coin may be positioning for a renewed push higher—provided support at $0.16 remains intact.

Structural Shift and Support Cluster Form the Base

DOGE recently rallied into the $0.23 zone before pulling back, but the retreat has held firm at a confluence of technical support: the 0.618 Fibonacci retracement, the Point of Control, and a developing higher low. This alignment marks $0.16 as a pivotal level.

The price has also reclaimed and retested its 200-day moving average, printing a clean bounce—a textbook sign of accumulation rather than distribution. Candle closes above support zones confirm market strength, even as broader volatility lingers.

Momentum is aligning with structure. The Stochastic RSI, now at 19, is triggering a bullish crossover from oversold territory. Historically, similar crossovers above the 20 level have preceded sharp upward moves in DOGE price cycles.

Breakout Scenario Strengthens as Momentum Rebuilds

The current setup points to a possible retest of $0.23 in the near term. If that resistance breaks, minimal supply between $0.23 and $0.30 opens the door for a swift extension. Volume remains stable, while price continues to respect structural levels.

As long as the $0.16 support cluster holds, and momentum indicators confirm, the technical roadmap favors bullish continuation. A breakdown below $0.16 would invalidate the setup, but the bias remains tilted toward the upside for now.

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