Key Takeaways:
- A crucial support level from April continues to hold, suggesting range-bound behavior.
- While OBV remains weak, CMF and liquidity heatmaps point to possible upside.
- DOGE may rally toward $0.20, with $0.173 and $0.182 as interim resistance levels.
Dogecoin (DOGE) is back at the $0.142 support level it last tested in April, prompting renewed speculation about its short-term direction. Although the memecoin enjoyed a brief rally in May, analysts believe DOGE remains range-bound, with signs pointing toward a potential bounce targeting the $0.20 zone.
DOGE Maintains Weekly Bullish Structure
The weekly DOGE/USDT chart shows a swing high and low forming the basis of a bullish structure, supported by Fibonacci retracement levels. Despite recent pullbacks, Dogecoin has not broken below the critical $0.089 swing low established in late 2024.
However, on lower timeframes, DOGE’s internal market structure appears bearish. A move above the $0.259 local high would be needed to confirm a structural bullish flip. Technical indicators like the Relative Strength Index (RSI) suggest bearish momentum still dominates, while the On-Balance Volume (OBV) just retested levels last seen in March, hinting at weak market participation.
Extended Range Offers Insight into DOGE Price Action
The March-April trading range continues to provide a framework for current price action. Initially considered the top of the range, the $0.259 high from May is now seen as a failed breakout. As price returned to the $0.142 range low, this extended range has proven relevant once again.
Recent days have shown stronger buying pressure, as reflected by a positive Chaikin Money Flow (CMF) reading of +0.13. If momentum builds, DOGE could challenge dynamic resistance levels and head toward the $0.198–$0.20 supply zone.
Liquidation Heatmap Hints at Immediate Targets
Data from Coinglass’s 3-month liquidation heatmap shows the $0.145–$0.162 liquidity zone has been swept. New liquidity clusters have emerged at $0.173 and $0.182—potential near-term targets if bullish momentum continues.
Also Read: Dogecoin Volatility Spikes After False Ceasefire and $24M Whale Transfer
The next significant liquidity zone sits around $0.21, coinciding with a mid-range resistance from earlier consolidation phases. This alignment strengthens the argument for a possible DOGE rebound in the short term.
Swing traders may find the current DOGE setup appealing. A strategic long entry near $0.156–$0.16 with a stop-loss below $0.154 could offer a favorable risk-reward ratio. The take-profit zone of $0.198–$0.20 aligns with both technical resistance and liquidation interest.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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