Dogecoin (DOGE) is showing signs of a potential bullish continuation as technical analysis reveals a bull pennant pattern forming on the hourly chart. The pattern emerged following a sharp intraday advance, creating a strong flagpole fueled by aggressive buying. After the initial impulse, the price has narrowed into lower highs and higher lows, forming a compression zone that reflects volatility tightening rather than weakness.
Currently trading around $0.1268 with modest intraday gains, Dogecoin has experienced a weekly decline of approximately 12%. The cryptocurrency has entered a consolidation phase after declining from its recent rejection at the $0.12 resistance level. During the pullback, DOGE lost key market structure levels including the point of control and value area low, bringing it to the critical $0.11 swing low where early signs of demand are emerging.
Analyst Trader Tardigrade noted that volume has dropped during the consolidation period, which is typical as traders await confirmation. The price continues to hold above the lower trendline, preserving the higher-low sequence from the initial impulse. "Bull pennants statistically favor continuation in the prior trend direction," the analyst observed, adding that "a break above upper resistance could trigger momentum-driven follow-through."
At the $0.11 level, technical analysis suggests a potential swing failure pattern may be developing. This occurs when price briefly breaks below a key support level but fails to maintain acceptance, instead reclaiming the broken level on a closing basis. Wicks below $0.11 indicate that stop losses were triggered, but the lack of follow-through selling pressure suggests larger market participants may be accumulating positions.
Despite the short-term bullish signals, the weekly charts provide a broader context showing Dogecoin remains inside a long-term descending channel, marking the corrective phase since the last cycle peak. Price has yet to close above channel resistance, keeping the macro trend technically bearish. However, recent weekly candles show stabilization near the lower half of the channel, with a bullish reaction candle indicating buyers are stepping in at historically responsive levels.
The broader meme coin sector shows similar weakness, with assets like SHIB, PEPE, BONK, and FLOKI all experiencing double-digit weekly losses, signaling sector-wide pressure rather than isolated underperformance by Dogecoin. For any recovery to gain traction, DOGE must demonstrate sustained acceptance above $0.11 with expanding bullish volume, while the $0.12 resistance zone remains the primary target for any meaningful bounce.
