Dogecoin Buy Signal Flashes as DOGE Approaches Key $0.056 Support Level
Dogecoin (DOGE) is testing a critical support zone near $0.056, a level that has historically acted as a price floor, as a widely followed technical indicator flashes a buy signal on the monthly chart. The development has drawn attention from traders who see a potential setup for a significant rebound.
On July 25, 2026, analyst Ali Charts reported that the TD Sequential indicator had triggered a buy signal on Dogecoin’s monthly timeframe. This signal, which tracks market cycles to identify potential trend exhaustion, appeared as the meme coin’s price approached the $0.056 support area. “If that support holds, I’m watching for a rebound toward $0.16, with the top of the channel near $0.45 as the broader upside target,” Ali Charts stated in a post on X.
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Monthly Buy Signal Puts Focus on $0.056 Support
The TD Sequential buy signal on a monthly chart carries more weight than shorter-term signals because it reflects longer market cycles. However, the indicator alone does not guarantee a price reversal. The $0.056 level now serves as the primary battleground for buyers and sellers. A strong defense of this support could stabilize the current market structure, but traders need to see follow-through buying pressure to confirm a recovery.
Without a decisive bounce, DOGE may continue to trade near the lower end of its recent range. The current price action reflects a prolonged period of weakness, making the support test a key moment for the asset’s short-term trajectory.
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Rebound Targets and Broader Market Structure
Ali Charts identified $0.16 as the first significant resistance and rebound target if the $0.056 support holds. Reaching that level would represent a notable recovery and signal renewed demand from buyers. The longer-term upside target sits near $0.45, which corresponds to the top of a large price channel. Achieving that target would require DOGE to break through multiple intermediate resistance levels, including the $0.16 mark and the psychological $0.20 zone.
Adding to the technical picture, analyst XForceGlobal highlighted a potential large triangle formation on Dogecoin’s chart. In a post on July 25, he noted that the structure could support a substantial move if the price remains above its invalidation level. “Don’t sleep on DOGE, this could be a massive triangle in the making,” he wrote, adding that a conservative 10-20x upside could follow based on accumulation dynamics and cycle rotation. Triangle patterns often precede strong directional moves after periods of compression, but they require confirmation through volume and price action.
The combination of a monthly buy signal and a large triangle pattern has put Dogecoin back on the radar for technical traders. The immediate focus remains on the $0.056 support zone, where the next major price move will likely be decided. A failure to hold this level would weaken the bullish setup and could lead to further downside, while a successful defense could set the stage for a significant recovery in the weeks ahead.
