Key Takeaways
- Dogecoin is forming a bullish falling wedge pattern on the 4-hour chart, with technical indicators like RSI and MACD showing signs of upward momentum despite recent price consolidation.
- Derivatives data shows declining open interest and rising long liquidations, signaling caution among traders even as DOGE eyes a potential breakout toward the $0.20 psychological resistance.
As the broader crypto market grapples with uncertainty, Dogecoin (DOGE) stands out with a technical setup that hints at a potential breakout. While Bitcoin and Ethereum remain range-bound, DOGE’s price action suggests a possible rally to reclaim lost ground following Thursday’s market-wide dip.
Falling Wedge Formation Signals Bullish Potential
On the 4-hour chart, Dogecoin is currently trading near the upper resistance of a falling wedge—a typically bullish reversal pattern. After a brief pullback, DOGE is holding steady near $0.1795 support, despite a modest 1% decline today. This key level could either trigger a rebound or open the door to deeper losses toward $0.1641.
Technical indicators show a mixed but cautiously optimistic picture. The Relative Strength Index (RSI) is at 44, recovering from oversold levels, while the Moving Average Convergence Divergence (MACD) remains in a positive trajectory toward the zero line. However, the MACD also signals a potential bearish crossover, suggesting consolidation may continue in the short term. A successful breakout above the wedge pattern could send DOGE toward the $0.20 psychological barrier, with the $0.22 supply zone as the next target.
Derivatives Market Reflects Waning Confidence
Despite the bullish chart pattern, Dogecoin’s derivatives data reveals signs of trader caution. CoinGlass data shows open interest has dropped 1.44% to $1.90 billion, while 24-hour liquidations spiked to $3 million. Notably, $1.89 million of that came from long positions, highlighting increased pressure on bullish traders.
The OI-weighted funding rate has also declined to 0.0054%, down from a recent peak of 0.0075%, indicating reduced confidence among leveraged positions. Still, the long-to-short ratio stands neutral at 1.0032, pointing to a balanced battle between bulls and bears.
Can DOGE Hit $0.20?
Dogecoin’s price remains at a pivotal technical level. While on-chain sentiment in derivatives markets suggests caution, the bullish wedge formation and stable technical indicators could fuel a breakout. A decisive move above resistance would likely pave the way for a rally toward $0.20 and beyond—provided broader market conditions stabilize.
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
Also Read: Dogecoin Founder Questions Trump’s Tariffs Amid Market Turmoil
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
