Dogecoin is closing in on a key long-term support zone around $0.056, highlighted by a monthly TD Sequential buy signal that hints at a possible market reversal.

If it holds this level, DOGE might bounce back toward $0.16 and possibly reach $0.45 over time. But a drop below $0.05 could dismantle the optimistic setup.

The cryptocurrency is currently navigating a multi-year contracting triangle pattern. Analyst XForceGlobal noted that staying above the pattern’s critical invalidation point could keep alive a speculative 10x-to-20x upside based on cyclical behavior and accumulation.

On the weekly chart, DOGE trades near $0.073 after falling from its 2024 highs, approaching the rising lower boundary that has supported the structure since the 2022 bottom.

According to Elliott Wave analysis, DOGE likely has several swings left within this formation: a rebound, a pullback, then a final test of support before a stronger breakout happens.

However, the bullish outlook depends largely on DOGE staying above the wave-four low and the invalidation zone close to $0.05. Falling decisively below would break the triangle and open the door to deeper declines.

Signs of buyers pushing back would emerge once DOGE climbs above $0.10, with further hurdles at $0.18, $0.24, and the descending upper boundary needing to be cleared to confirm a bigger uptrend.

So far, Dogecoin is holding a last-stand support rather than breaking out, which keeps accumulation hopes alive but remains fragile.

On the monthly chart, a TD Sequential buy signal triggered near $0.056 suggests the selling pressure could be easing. Analyst Ali Martinez said maintaining this support level might spark a rebound toward $0.16, within a longer-term channel that targets $0.45.

This buy signal marks a possible reversal zone but doesn’t guarantee the bottom is set. The $0.056 mark is the pivot point staying above could help DOGE regain resistance at $0.10 before aiming higher.

Breaking above $0.16 would boost recovery momentum and set sights on the channel’s upper boundary near $0.45. But a close under $0.056 on the monthly chart would invalidate this scenario and suggest further weakness.