DOGE has returned to a rising monthly trendline previously tested in 2017 and 2020 before major rallies.
Dogecoin traders on both spot and leveraged markets are feeling the strain as evidenced by weekly losses and recent liquidation surges.
A rebound from the trendline could support the bullish case, while a clear break would weaken it.
Historical price patterns have caught the attention of market traders again, now that Dogecoin is making a comeback to trendline support.
Dogecoin Revisits a Familiar Trendline
Dogecoin has returned to a long-term rising trendline that preceded two earlier rallies. Trader Tardigrade (@TATrader_Alan) compares the current test with those recorded in 2017 and 2020. Both earlier visits came before strong advances, making the latest approach worth watching.
Source: X
The blue line is a monthly chart that has taken a couple of big bottoms throughout DOGE's trading career. As the support level is on an upward slope, it indicates that the level is changing over time. Price behaviour around this line will help traders judge whether buyers remain active.
In 2017, DOGE approached the line before recovering from a prolonged decline. The next test came in 2020, before the rally that carried into 2021. Those two episodes explain why traders are comparing the present chart with earlier cycles.
The time between these visits has also caught attention.The blue line is a monthly chart that has taken a couple of big bottoms throughout DOGE's trading career. Its upward slope means the support level changes as time passes.
Recent Losses and Liquidations Show Market Strain
DOGE as of writing trades at $0.07898, down 1.67% over 24 hours. The provided data indicates a 7.29 per cent weekly drop and daily trading volume of $421.7 million.This recent weakness comes as traders watch the monthly trendline.
The liquidation chart tracks forced closures of leveraged positions from April through October. Dogecoin climbed towards $0.11 in late April before falling through May and June. Large red and green bars appeared during these moves as traders faced sudden price changes.
Activity narrowed during July and early August, when DOGE traded around 0.07–0.08. A sharp late-August move brought a tall liquidation bar, followed by further price gains in September. DOGE then retreated from around $0.10 during October.
These bars show where leveraged traders faced forced closures, but they cannot predict future prices. Their meaning depends on the positions liquidated and the price movement at that time. The recent decline adds another factor for traders assessing the monthly support line.
DOGE Needs to Hold Support for the Bullish Case
The setup as of writing depends on whether DOGE can remain above the rising trendline. A temporary recovery would not form a sustainable recovery. Better monthly closes would be better evidence of the area's buyers' defense.
It is also worth noting that the price is resistant above the current price. A wider advance would have to overcome nearby barriers before it could happen. Otherwise, it's possible that the market will keep trading sideways or that it will move back down.
Trader Tardigrade sees it as a potential buy zone, since the previous tests were done before significant rallies. However, the previous maneuvers aren't a certain bet for another increase in 2026. The direction of the market needs to be demonstrated by price action.
A potential future advance is outlined with a green dotted line on the chart. It will not provide a price target or a time-frame for such a move. Traders need to know how to differentiate the drawn projection from a move that is already confirmed by the market.
Any break below the trendline will make the comparison with 2017 and 2020 weaker. A successful hold followed by a recovery would keep that pattern relevant. Until either outcome becomes clearer, DOGE's next move remains uncertain.
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