Dogecoin (DOGE) started the new year with notable strength and, in line with broader cryptocurrency market sentiment, showed renewed optimism. Following a rally of nearly 35% over the past week, price action is now approaching a phase where market direction will depend on whether key levels can be maintained as momentum begins to soften.

Dogecoin technical analysis

DOGEUSD - 4-Hour Time Frame

DOGE entered the year on a strong note, but after the impulsive move higher, price action has shifted into a consolidation phase around the $0.15 area. This region also aligns with the 0.236 Fibonacci retracement level at $0.147, which has acted as an important support so far. Recent price behavior, however, suggests gradual slippage below this level, indicating weakening short-term momentum.

The primary support zone lies just below the current price and previously served as the base for the latest upside expansion. A return to this area could trigger a more pronounced reaction from buyers. Directly beneath it sits the 0.382 Fibonacci level at $0.141, a level where the current pullback could naturally extend. This view is reinforced by the development of a lower low and lower high within the market structure. From an ABC Fibonacci correction perspective, a corrective zone in the $0.137–$0.141 range remains technically relevant.

If this area fails to hold, downside pressure could intensify. In such a scenario, market reactions around the 0.5 Fibonacci level at $0.136, followed by the 0.618 level at $0.131 and the 0.786 level at $0.125, would become increasingly important. An additional support zone is located below these levels, which could play a meaningful role in any attempt at broader stabilization or a potential structural shift.

Dogecoin price target

If DOGE manages to stabilize and buying interest re-emerges in the coming days, the first area of interest on the upside remains the nearby resistance zone overhead. This level was previously tested only via a wick and was followed by strong selling pressure, underscoring its technical significance.

A sustained move above this resistance would shift attention to the price gap located between $0.165 and $0.172. Acceptance within this zone could allow price to attempt a full gap fill. Beyond that, the next resistance area above the gap would come into focus, where market reaction would be critical in assessing whether upside momentum can be maintained or if renewed selling pressure emerges.