- Dogecoin is showing signs of a bullish double bottom reversal, with rising open interest and technical indicators hinting at a potential breakout toward $0.25.
- Despite recent long liquidations, growing trader activity and a positive long-to-short ratio suggest increasing optimism in the market.
Dogecoin Holds Strong Amid Market Turbulence
As Bitcoin stumbles below $108,000, most meme coins are facing a tough battle to retain investor interest. Yet, Dogecoin is defying expectations, holding steady around $0.21 and flashing early signs of a potential breakout. The meme coin is currently forming a classic double bottom reversal pattern—often a precursor to a significant bullish move.
Dogecoin Hints at Consolidation Breakout
Zooming into the 4-hour chart, DOGE is trading within a consolidation zone, oscillating between $0.2177 and the $0.25 resistance. With immediate resistance at $0.2302 acting as the neckline of the double bottom, a breakout above this level could confirm a bullish reversal.
Technical indicators are aligning with this outlook. The MACD is nearing a bullish crossover, supported by bullish divergence on the price chart. While the Supertrend indicator still flags a bearish trend, a close above $0.2349 could flip the script in Dogecoin’s favor.
Fibonacci levels add further clarity. Short-term resistance at $0.2401 aligns with the 23.60% retracement level, indicating multiple hurdles before DOGE can attempt a full-scale move to $0.25. However, if bulls gain momentum, the price could even test the $0.2680 level.
Derivatives Market Signals Growing Anticipation
Beyond technicals, derivatives data is showing mixed but notable activity. Dogecoin open interest has risen 2.89% to $2.71 billion, reflecting growing trader engagement. Funding rates remain positive at 0.0070%, suggesting bullish sentiment is building.
However, liquidations tell a more cautious tale—$4.51 million in long positions were liquidated in the past 24 hours, compared to just $1.41 million in shorts. Despite this, the long-to-short ratio has risen from 0.915 to 0.945, as long positions climbed to 48.59%.
Can DOGE Break the $0.25 Barrier?
If Dogecoin successfully confirms its double bottom reversal, a breakout toward $0.25—and potentially higher—could be in play. With rising trader interest and technical indicators supporting a shift in momentum, DOGE may be gearing up for a bullish run against the odds.
