Dogecoin price rose for the second consecutive day as the crypto market rally resumed after the release of the CLARITY Act and the soft consumer inflation report. DOGE rose to a high of $0.1485, its highest point since January 7, and technicals suggest that it has more upside to go. The token is rising because of the ongoing crypto market rally, which has affected Bitcoin and other altcoin. Bitcoin jumped above the key resistance level at $95,000 for the first time in months.
Other top meme coins like Pepe and Shiba Inu have also soared. There are four main reasons why this rebound is happening. First, this is the January Effect, a situation where financial assets do well in the first few days of the year. Second, the coin is rising as US inflation softens, with the core Consumer Price Index (CPI) falling from 2.7% in November to 2.6% in December.
This decline will likely continue as key prices like gasoline and mortgage rates tumble. Third, the rise is because of the upcoming vote of the CLARITY Act, which will simplify crypto regulations. DOGE ETF inflows have jumped by over $4 million this year. The daily timeframe chart shows that the DOGE price formed a giant falling wedge pattern between October and January 1.
This pattern is made up of two down-sloping and converging trendlines. The rebound happened when the two lines neared their convergence. The coin also rebounded after the coin formed a bullish divergence pattern. Most recently, the coin formed a bullish flag pattern, which is made up of a vertical line and a descending channel.
The pattern often leads to more upside over time. The coin has moved above the 50-day Exponential Moving Average (EMA), a sign that bulls are now in control. It has also moved above the Supertrend indicator and entered the third phase of the Elliott Wave, which is usually the longest. Therefore, the token will likely continue rising as bulls target the 38.2% Fibonacci Retracement level at $0.1910. This price is nearly 30% above the current level.
Dogecoin rose for the second consecutive day, climbing to $0.1485—the highest level since January 7—as the broader crypto market rally picked up pace. Bitcoin moved above the key $95,000 resistance, signaling renewed buying interest across the sector, with meme coins like Pepe and Shiba Inu also gaining. There are several catalysts behind the rebound. First, the January Effect often boosts asset prices in the early days of the year. Second, softer US inflation—core CPI easing to 2.6% in December—adds to favorable market momentum. Third, optimism surrounding the CLARITY Act, which aims to streamline crypto regulations, supports a continued rally. DOGE ETF inflows have surpassed $4 million this year, underscoring renewed demand. Technically, DOGE validated a former falling wedge pattern from October through January 1, with bullish divergence and a bullish flag signaling potential further upside. It also surpassed the 50-day EMA and the Supertrend indicator, placing bulls in control and aligning with the longer Elliott Wave phase three. Looking ahead, bulls may target the 38.2% Fibonacci retracement near $0.1910, roughly 30% above current levels, as trading momentum persists and buyers maintain control.
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