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Key Takeaways:
- Dogecoin holds above $0.171, with bulls defending key support at $0.166 amid short-term bullish momentum.
- Derivatives volume surged 275%, showing strong long bias and fueling optimism for a breakout.
- DOGE must clear $0.175 resistance to confirm a move toward $0.185–$0.198 in the coming days.
Dogecoin (DOGE) is trading near $0.171, recovering steadily from a recent pullback and showing signs of bullish momentum. After briefly spiking above $0.175 earlier this week, DOGE has retraced slightly but remains above key support. Technical indicators and derivatives data suggest the next 24–48 hours could be pivotal for price direction.
DOGE Price Action: From Falling Wedge to Compression Breakout
Since bouncing off its $0.162 low on July 3, Dogecoin has rallied over 5%, breaking out of a falling wedge pattern on the 4-hour chart. Price is now consolidating just below the upper Bollinger Band at $0.174, with the mid-band offering support at $0.1665.
Technical indicators support the bullish tilt:
- Parabolic SAR dots have flipped below the price, signaling short-term trend strength.
- On the Smart Money Concepts (SMC) chart, DOGE holds above a recent Break of Structure (BOS) at $0.158 and is retesting a Change of Character (CHoCH) zone around $0.170–$0.175.
- Price remains inside a tight liquidity zone, indicating buyers are gradually absorbing supply.
Derivatives Market Fuels DOGE Momentum
The rally is being driven not just by chart patterns but also by rising activity in Dogecoin’s derivatives market.
According to Coinglass, DOGE’s 24-hour volume surged 275% to nearly $5 billion, and open interest climbed almost 8%. The Binance top trader long/short ratio is 2.74, confirming a strong long bias across the board.
Despite this, the 30-minute RSI has cooled to 45.2, suggesting consolidation rather than a sharp reversal. The MACD on the same timeframe is showing a weakening bullish crossover, implying the rally may be pausing but not over.
Technical Compression Suggests Imminent Break
A key development on the 4-hour chart is EMA compression, with the 20, 50, 100, and 200 EMAs converging between $0.1668 and $0.1734. Combined with expanding Bollinger Bands, this setup points to an imminent volatility breakout. The price is also approaching the descending trendline resistance around $0.175. A clean break above this level could unlock targets at $0.185 and $0.198.
However, rejection could see DOGE fall back to support at $0.166, or deeper to $0.158, the prior BOS zone on the daily chart.
Dogecoin price remains at a crossroads. Momentum, derivatives data, and trend indicators support a bullish breakout, but a decisive close above $0.175 is needed to confirm the move. The next 48 hours will be crucial in determining whether DOGE pushes toward $0.20 or returns to key support levels.
Also Read: Ripple Price Prediction: XRP ETF Approval Odds Near 100% Despite Sideways Trading
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.
