Dogecoin has broken out of its recent downtrend following a 24% price correction earlier this month. Despite pulling back from a January 6 peak of $0.155, the meme coin retained its monthly gains after a 35.59% surge. Technical indicators like the MACD showed early recovery signs, while analysis of liquidity clusters and ETF inflows painted a mixed picture for future momentum.
Dogecoin broke out of a downtrend this month after a 24% price correction. The cryptocurrency had peaked at $0.155 on January 6 before retracing from those levels.
The pullback did not erase January’s gains, which followed a 35.59% surge. The MACD indicator remained negative but showed early recovery signs as its line approached the signal line.
A daily close above $0.128 could have shifted short-term control back to the bulls. Holding above $0.12 remained critical for preserving the asset’s upside structure.
Dogecoin-linked exchange-traded funds saw limited investor interest, with just $6.41 million in Cumulative Net Inflows. This was despite the token’s market capitalization of $20.6 billion.
On January 27, the ETFs registered $246,000 in inflows, bringing January’s total to $4.07 million. That figure surpassed the combined inflows of November and December 2025.
Dogecoin had nearly cleared all downside liquidity, with clusters forming above $0.129. This showed strong potential for an upward move, as traders were watching closely for signs of liquidity hunting.
If the price cleared the $0.129–$0.132 range, short positions could have faced forced covering. That scenario might have accelerated upside momentum if follow-through buying appeared.
Historically, Dogecoin had remained stagnant during Gold’s mania phase, only to surge once Gold entered stagnation. According to prominent analyst Trader Tardigrade, this cyclical relationship was evident from 2015 to 2021.
As Gold showed signs of stagnation again, Dogecoin seemed poised to enter its own “mania phase.” With its price showing recovery signs, the potential for a breakout above resistance levels seemed more likely.
