- Dogecoin faces a critical test at $0.25, with a breakout signaling further upside potential.
- Dogecoin’s recent surge was driven by whale accumulation and increased market liquidity.
Dogecoin (DOGE) has surged 15.76% in a single day, reclaiming the $0.20 level and erasing its weekly losses. This rally was fueled by whale accumulation, with major holders adding 140 million DOGE to their wallets.
With both macroeconomic and on-chain signals aligning, DOGE faces a crucial moment. Can it sustain this uptrend and establish $0.20 as a solid support level?
Bullish Signals Strengthen DOGE’s Case
On the 1-day chart, DOGE has retraced over 50% of its post-election gains. Despite forming three consecutive lower lows and trading at $0.227, technical indicators hint at a potential reversal.
- RSI shows oversold conditions, suggesting a bounce could be near.
- MACD has formed a bullish crossover, signaling growing upward momentum.
- Whale accumulation continues, reinforcing the bullish outlook.
Additionally, trading volume has surged by 252% to $3.71 billion, adding further buying pressure. The rise in global liquidity—driven by the so-called “Trump pump”—has liquidated $10.10 million in short positions, reducing selling pressure.
Can DOGE Break the $0.25 Resistance?
Dogecoin now approaches a key resistance level at $0.25. A breakout with strong volume could confirm further upside, while failure to hold gains might suggest a temporary relief rally.
Currently, the broader crypto market has rebounded, pushing the total market cap back above $3 trillion. However, the question remains: is DOGE’s surge a reaction to increased liquidity, or the start of a more sustained uptrend?
A Relief Rally or the Start of a Long-Term Trend?
After hitting $0.242, DOGE has pulled back 7.66%, forming a red candlestick that signals increased selling pressure.
In derivatives markets:
- Open Interest (OI) has jumped 10.57% to $2.03 billion, showing rising speculative activity.
- Weak spot demand poses a risk, as overleveraged positions could trigger cascading liquidations worth around $280 million.
If bulls fail to maintain momentum, DOGE’s recent rally might turn into a “sell-the-news” event, pushing prices below $0.20.
What’s Next for DOGE?
The coming days will be crucial. If DOGE breaks $0.25, short sellers may be forced to cover, further driving the price higher. However, a failure to hold above $0.20 could trigger more downside pressure.
For bulls, sustained spot demand is key. If buyers step in, DOGE may stabilize and consolidate. Otherwise, another drop below $0.20 remains a real possibility.
