DOGE price breaks out of falling wedge pattern with increasing volume towards $0.21 resistance
Dogecoin is once again capturing the attention of the market as it displays new technical indicators on longer timeframes, prompting experts to reconsider whether the meme-based cryptocurrency is embarking on an early stage of recovery.
Recent data suggests that Dogecoin has broken out of a falling wedge pattern, a pattern closely watched by traders for signs of potential trend reversals. The coin has managed to surpass the $0.14 mark, which had previously posed as a short-term resistance level, signaling a positive shift in market sentiment rather than a temporary uptick.
As of January 12, 2026, Dogecoin closed near $0.14, registering a modest 0.7% daily increase. Although the increase was not significant, it marked the first daily closure above the wedge resistance, indicating initial acceptance following the breakout. This development comes amid a period of consolidation in the broader cryptocurrency market, where there is mixed confidence in the direction of major assets.
The breakout from the falling wedge pattern on a daily timeframe is supported by strong volume, a bullish crossover on the Relative Strength Index (RSI), and positive momentum on the Moving Average Convergence Divergence (MACD) indicator. Upside targets for Dogecoin are projected to be around $0.20–$0.21. However, sustained follow-through on the upside typically requires a significant expansion in trading volume, which has not yet been observed in the current move.
While academic research suggests that falling wedge breakouts result in upward continuation most of the time, success rates diminish during low-liquidity or range-bound market conditions. This is pertinent to the current environment in the cryptocurrency space, where market dynamics are somewhat restrained.
Dogecoin is currently facing resistance in the $0.142–$0.145 range, a level marked by previous daily closes, short-term volume nodes, and a cluster of declining moving averages. Despite these hurdles, ongoing technical analysis indicates short-term convergence, a retest of levels, and a challenge against the daily 50-period moving average.
Traders are closely monitoring a descending triangle pattern on the DOGE/USDT pair, with a speculated bottom around $0.11. Upside targets are set at $0.20 and $0.24, contingent on increased liquidity and confirmation on longer timeframes. The path to levels around $0.32 depends on reclaiming the mid-$0.20s first.
On the four-hour chart, Dogecoin recently broke above a descending trendline, resulting in a modest price increase. However, trading volume has remained subdued, revealing cautious market participation. Key support levels are identified between $0.11 and $0.13, while resistance near $0.16 coincides with the 50-day moving average and previous distribution zones.
Analysts have proposed various upside scenarios for Dogecoin in 2026, but each prediction relies on factors such as market liquidity, volume expansion, and confirmation on higher timeframes. The coin’s journey towards reclaiming higher price levels remains subject to market dynamics and investor sentiment.
