DOGE Breakout Alert: Buy the Dip for Potential $1.70 Surge
Dogecoin's momentum just flipped the script—traders are scrambling as technical indicators scream bullish.
Breaking Through Resistance
The meme coin shattered key resistance levels, clearing a path toward that elusive $1.70 target. Market sentiment shifted overnight, catching short-sellers off guard.
Timing the Dip
Smart money's already positioning—current pullbacks look more like opportunities than setbacks. Volume patterns suggest institutional interest isn't just retail hype for once.
Risk Management Still Applies
Never go full degen—remember what happened to those leverage traders last cycle. Always secure profits before the whales decide to dump on the little guys.
Because nothing says 'sound investment' like a cryptocurrency that started as a joke—but then again, traditional finance hasn't exactly covered itself in glory either.
Short-Term Signal Appears After Pullback
Dogecoin (DOGE) was trading at $0.26 at press time, with a 24-hour trading volume of $6.15 billion. The asset has dropped 10% in the past day but remains up 13% over the past week. The recent drop comes after a multi-day rally, and one technical tool now points to a possible pause in the downtrend.
Crypto analyst Ali Martinez shared that the TD Sequential indicator has printed a buy signal on the 4-hour chart. The setup appeared NEAR the $0.263 mark. This tool is often used by traders to spot potential reversals after extended moves in either direction. According to Martinez,
Buy the Dogecoin $DOGE dip, says the TD Sequential indicator! pic.twitter.com/N6RmDaDYD4
— Ali (@ali_charts) September 15, 2025
While the signal may suggest that sellers are losing strength, traders will likely wait for further signs, such as a shift in volume or price confirmation, before reacting.
Breakout Confirmed on Weekly Chart
A broader pattern has formed on the weekly timeframe. According to Trader Tardigrade, Doge has broken out of a long-term symmetrical triangle, which formed over several months and is marked by converging highs and lows.
Interestingly, the breakout came with a candle close above the upper trendline, pointing to a possible MOVE higher. The setup carries a projected 1:29 risk-to-reward ratio, with a target near $1.70.
The suggested entry zone is around $0.27, while downside risk is placed below $0.20. These types of structures are commonly used to frame trades around breakout zones after long periods of price compression.
In addition, DOGE may also be forming a Power of Three (PO3) setup on the 1-hour chart. This model divides the price action into three stages: accumulation, manipulation, and distribution. The chart shared by Trader Tardigrade shows DOGE moving from a sideways range into a short decline, often viewed as the manipulation phase.
$Doge/hourly#Dogecoin might be forming a Power of Three (PO3) trading setup pic.twitter.com/AZPMuI69gy
— Trader Tardigrade (@TATrader_Alan) September 15, 2025
If the setup plays out as expected, the price could shift into the distribution phase, which typically involves a move higher. In this case, the next resistance area is seen around $0.33, based on past structure.
Short Pressure Builds at Local Lows
On lower timeframes, DOGE is seeing increased short interest. Analyst Cryptoinsightuk noted that Open Interest ROSE to 9.02 billion, while the funding premium turned negative at -0.0078. Spot volume also increased, showing higher market activity.
The analyst stated,
“Likely to see a strong reversal bounce at some point soon as these late shorts get squeezed.”
In a downtrend, where a negative premium may also exist, and during which open interest increases, it is hazardous to think of the selling parties taking a position late in the move. If buyers do come through, short positions may be unwound with haste.
A price drop shall manifest itself, assisting one in deciding whether this is a favorable bounce or the onset of an extensive reversal.
