Dogecoin News Today: Traders Hold Breath as DOGE's Critical Support Tests Bullish Hopes

Dogecoin (DOGE) has recently drawn significant attention from traders and analysts as technical indicators suggest the cryptocurrency could be on the verge of a reversal. The TD Sequential indicator, a tool commonly used to identify potential turning points in price trends, has flashed a buy signal on DOGE’s 4-hour chart. This signal, appearing after a series of bearish candles, suggests that the downward pressure may be waning, and a short-term bounce could be on the horizon. The timing of this signal is particularly noteworthy given DOGE’s extended downtrend, raising hopes among traders that a recovery may be imminent [1].

Currently trading near $0.209, DOGE is positioned at a historically significant support level, which has previously acted as a floor for the coin. Technical analysts point to the convergence of multiple factors—oversold conditions, a key support level holding firm, and the TD Sequential buy signal—as indicators that the coin could see a reversal in the near term. If bulls manage to keep the price above $0.20, resistance levels at $0.216 and $0.222 become the next hurdles to overcome. A successful break above these levels could set DOGE on a path toward $0.244 and potentially even $0.30, targets that have generated optimism among market participants [2].

Beyond short-term signals, long-term technical patterns are also being closely monitored. A cup-and-handle formation has been observed on DOGE’s two-month chart, a well-known bullish pattern in technical analysis. If this pattern plays out as expected, it could propel DOGE toward price targets of $0.82 and even $2.18. However, this scenario hinges on the coin breaking through key resistance levels such as $0.244 and $0.277. Failure to do so could stall momentum and expose the asset to renewed selling pressure [3].

Market sentiment is also skewed toward the bullish side, particularly on major exchanges like Binance. Derivatives data shows that long positions currently dominate with 75% of total open interest, a sign that traders are actively betting on a recovery. However, this heavy long exposure also increases the risk of cascading liquidations should the price retrace. Liquidation clusters have been identified near $0.215 for short positions and $0.225 for longs. These levels represent potential flashpoints for volatility, where sharp price movements could force traders out of positions, amplifying swings in either direction [1].

Given these dynamics, traders are advised to remain cautious as the price hovers in a critical range. A decisive move beyond $0.215 or $0.225 could determine whether DOGE consolidates or breaks higher. The alignment of technical patterns and bullish sentiment makes a sustained recovery more likely, but the path forward will require careful navigation of key resistance levels and liquidation risks. If DOGE can overcome these challenges, the potential for a more substantial rally appears increasingly viable [3].

Source:

[1] Dogecoin eyes breakout: THIS will decide DOGE's next big move (https://ambcrypto.com/dogecoin-eyes-breakout-this-will-decide-doges-next-big-move/)

[2] Dogecoin (DOGE) Ready to Bounce After Sharp Dip (https://captainaltcoin.com/dogecoin-doge-ready-to-bounce-after-sharp-dip-here-are-the-next-big-targets/)

[3] Dog Coin Price Prediction: Buy Signal from TD Sequential ... (https://thetradable.com/crypto/dog-coin-price-prediction-buy-signal-from-td-sequential-sparks-reversal-hopes-ig--m)