- Dogecoin shocked traders with a sharp rebound above $0.16 after a bearish death cross, triggering a short squeeze.
- The rally now faces key resistance at $0.17, with a potential push toward $0.20 if momentum holds.
Dogecoin Rebounds After Scary Sell-Off
Dogecoin (DOGE) stunned traders this week by reversing a sharp 14% drop triggered by a feared “death cross” signal. The popular meme coin fell from $0.16 to around $0.137 — one of its biggest weekly plunges since April — and just as bears prepared for more pain, DOGE flipped the script.
Instead of crashing further, DOGE surged back above the $0.16 level by Tuesday, defying historical expectations associated with the bearish pattern. Traders who expected a prolonged downturn were caught off guard as the market staged an epic fakeout.
Oversold Bounce Triggers Short Squeeze
The sudden comeback wasn’t fueled by celebrity tweets or viral endorsements — instead, market dynamics took center stage. Oversold technical conditions and thin liquidity gave DOGE just the setup it needed for a rapid bounce. As prices climbed, short sellers rushed to cover their positions, creating a short squeeze that intensified the rally.
This reversal happened in the broader context of a stabilizing crypto market. Bitcoin held steady above $105,000, while Ethereum maintained footing near $2,600. The relative calm in large-cap cryptos gave traders the confidence to take risks on more volatile assets like DOGE.
Key Resistance Ahead: Will DOGE Reclaim $0.20?
DOGE now faces a critical resistance zone between $0.165 and $0.17 — levels that previously acted as breakdown points in late May. A clean break above this range could re-establish bullish momentum and send prices toward $0.20, the level where the death cross first formed.
However, if Dogecoin fails to maintain its current strength, the rally may lose steam and settle as a brief market correction. For now, bulls are back in charge — but the next few days will determine whether this move has real staying power.
Dogecoin has once again proven it’s full of surprises, reminding both skeptics and believers that in crypto, the trend can shift in the blink of an eye.
