Despite Strong Recovery, Concerns Remain About the Sustainability of Dogecoin (DOGE) Upside Movement

Despite Dogecoin (DOGE) displaying strong recovery, concerns remain among traders about the sustainability of its upside movement. Today, market analyst Ali Martinez responded to these fears.

Dogecoin (CRYPTO: DOGE) traders have been discussing the possibility of a correction after the meme coin displayed strong recovery. However, market analyst Ali Martinez responded to these fears.

What Happened: As Martinez pointed out, despite minor declines, Dogecoin is still holding firmly from an established trendline, showing a sustained uptrend movement.

Martinez’s chart analysis pointed out that Dogecoin is recovering strongly from its long-term ascending support trendline that has been in place since October 2024. This line had served as a support level in the previous multiple times when the market faced corrections.

According to the analyst’s chart, this trendline appears at $0.1653. Dogecoin’s recent price has continued to hold firm above this support line, indicating that the buyers are consolidating around this region.

"As per the metrics, this area has been an enabling environment in the past and could remain so. It acted as a propellant for significantly higher movements in the past," Martinez added.

The trendline also appears to be a technical and psychological battlefield where positive market sentiment has consistently reappeared, assisting Dogecoin to reject the downturn pressure.

As reported by the chart, Dogecoin’s holding above this line could open the door to a substantial move toward the $0.27 level. This situation lays the foundation for renewed confidence in Dogecoin’s long-term movement.

Related Link: Stellar Lumens Outpaces Dogecoin, Cardano Among Biggest Cryptocurrency Gainers In Early Monday Trade

Why It Matters: Dogecoin is currently seeing an uptrend, with its price up 27.4% and 45.75% in the past week and one month, respectively. Today, its value stands at $0.2273, up 11.6% from yesterday. All these figures show buyers continue to enter the market.

The massive rise of its market cap, currently hitting $34.01 billion, further indicates a new wave of enthusiasm in the altcoin landscape. Despite Ethereum (CRYPTO: ETH) continuing to underperform Bitcoin (CRYPTO: BTC), market analysts believe that it is the beginning of a new altcoin season and Dogecoin is leading the way.

The meme coin has reignited memories of its 2021 bullish trend that enabled it to reach an AHT of $0.74. Although the current price is quite down from this record level, the present momentum is building up and on-chain indicators are strong.

Currently, Dogecoin is the eighth largest cryptocurrency, making it not just a meme token anymore.

The wider cryptocurrency market is assisting Dogecoin’s momentum. Ethereum’s underperformance over Bitcoin has channeled interest to small-cap tokens, a trend that occurs during altcoin seasons. During this cycle, investors have shifted their attention, transitioning from big-cap tokens to smaller ones for greater gains.