DOGE tests key support zone with bullish structure in play

On the daily timeframe, Dogecoin has transitioned from a previous downtrend into a more bullish structure. This shift is illustrated by a curved trend path showing how price has gradually turned and established higher lows, suggesting the early stages of a potential uptrend.

Currently, DOGE is trading within the reload zone, which overlaps with the high time frame breakout area between 0.1800 and 0.2000. This zone typically acts as an accumulation area in trending markets, offering both strong support and clear invalidation levels.

If price fails to hold this area, the level marked as number 2 at 0.1640 becomes key. A break below that would invalidate the current bullish structure. On the upside, if DOGE can reclaim the 0.618 Fibonacci level at 0.2000, there is potential for a bullish continuation toward the resistance zone marked as number 1, around 0.2500.

The outcome around this area will likely determine whether the market is setting up for another leg higher or if further correction is needed.

Zooming in on the 1-hour chart, DOGE is currently moving within a clearly defined range. The range low is found at 0.1850, the range equilibrium, or midpoint, is at 0.1930, and the range high sits around 0.2000. This structure has held for multiple sessions, indicating consolidation.

A break above the range highs could open a move toward the next key level at 0.2130, marked as number 1 on the chart. There is limited resistance between the range top and that area. However, a breakdown below the range lows could shift the bias to bearish and bring DOGE back toward the daily invalidation zone near 0.1640.

DOGE remains in consolidation short term, but the higher time frame structure suggests potential for bullish continuation if current levels hold.

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