- Dogecoin rebounded 17% after hitting a three-month low, supported by easing trade tensions and broader market recovery.
- Technical indicators show a bullish pennant, suggesting potential continuation toward $0.25 if momentum is sustained.
- Exchange outflows exceeding $440 million highlight investor confidence and reduced short-term selling pressure.
Dogecoin’s price is flashing early signs of a bullish breakout, with renewed market confidence helping the meme coin recover from recent lows. After tumbling 33% over the past week to a three-month low of $0.18 on October 12, Dogecoin rebounded sharply by 17% on Monday, reaching an intraday high of $0.21.
The rebound came as global markets steadied following positive signals in the U.S.-China trade dialogue. Former U.S. President Donald Trump’s recent comments on Truth Social suggested that the two nations were in discussions to delay the proposed 100% tariffs on Chinese rare earth imports. The news eased concerns of escalating trade tensions, leading to a broad-based crypto rally.
Bitcoin regained momentum, trading back above $115,000, while Ethereum and BNB advanced 9% and 16%, respectively. The overall crypto market capitalization climbed above $4 trillion, with meme coins such as Dogecoin benefiting from improved sentiment and renewed retail participation.
Strength from Investor Confidence
Data from CoinGlass revealed over $440 million in Dogecoin outflows from exchanges since the start of October, signaling strong accumulation trends. When investors move tokens into self-custody wallets, it typically reflects long-term holding intentions and reduced immediate selling pressure, creating conditions favorable for sustained gains.
On the four-hour chart, Dogecoin has developed a bullish pennant structure, typically formed by sharp upward movement followed by brief consolidation. This formation often precedes another leg higher if buying momentum holds. Technical indicators reinforce the optimistic outlook. The Moving Average Convergence Divergence (MACD) shows a positive crossover, while the Relative Strength Index (RSI) remains in neutral territory, suggesting room for additional upside.
Short-Term Outlook
Dogecoin is currently testing resistance around the $0.21 level, near the upper boundary of the pennant. A confirmed breakout could propel prices toward $0.25, aligning with the 200-day simple moving average and representing a potential 19% rise. However, a dip below the $0.20 psychological threshold would weaken the bullish setup and could trigger renewed downside pressure.
