Dogecoin Price Holds Support After False Breakout: Potential Bull Run?

Dogecoin (DOGE) has held above a crucial support zone after an earlier false breakdown, which may signal a potential bullish trend. The market demonstrated purchase demand after reverting from its previous state.

Dogecoin price movement and technical analysis indicators signal that it could anticipate another bullish trend.

Binance Traders Show Strong Bullish Sentiment in DOGE

The trading platform Binance indicates that about 72.13% of dealers maintain long positions with their open DOGE positions compared to 27.87% who had short positions at 06:00 UTC on April 15.

With a 2.59 Long/Short Ratio, the trading positions weigh two or more long positions for each short. The confidence of traders in DOGE’s continuing price rise creates an optimistic market outlook based on present trading data.

The market maintained positive moods throughout the recent Dogecoin price drops. The Relative Strength Index (RSI) on higher timeframes recently went through a descending trendline. Thus, it contributed to traders’ bullish attitudes.

This technical breakout signals that selling pressure is weakening. The RSI’s movement away from the oversold zone is a key technical development, especially for meme-based assets like DOGE.

The growth of long position buying coincides with the short squeeze after a bear trap occurs. Once the trigger caused prices to rise, new confidence began flowing through trader communities.

The current bullish sentiment patterns can generate market volatility, given that highly concentrated bets usually create unstable conditions. Traders must monitor the market carefully in the following sessions.

DOGE Breaks Out of Falling Wedge, Maintains Key Support Levels

DOGE price has broken out from a falling wedge pattern on the 1-hour chart. A technical pattern was initiated in early March, which consists of downward-slanted converging trendlines. Those trendlines have continued to develop until now.

Dogecoin price briefly dropped below support on April 7 before immediately rebounding. It proved the breakdown signal false and triggered an upcoming price rise.

DOGE has successfully broken out from this wedge pattern since December 2024 for the first time. Price movements demonstrate that investors have started buying at progressively lower points.

The DOGE crypto maintains its position above $0.16 after this level operated as a trading barrier earlier. The price can grow consistently if traders maintain elevated positions beyond the mentioned mark.

Technical indicators support the potential price movement. On daily charts, Dogecoin Price and RSI indicators generated a bullish divergence pattern.

History reveals that price reaction patterns before strong upward moves have occurred previously. The momentum indicates that buyers are taking control based on an upward trend of the Percentage Price Oscillator (PPO).

False Break Confirmed as Dogecoin Price Holds Above Crucial Support

The breakdown below $0.1275 proved to be temporary. DOGE recovered rapidly and kept trading above its support zone for multiple days. That demonstrated the bearish setup was incorrect.

The market reaction represents a classic bullish reversal pattern. That’s because early sellers ended up being trapped and boosted buying momentum within the market.

The bullish setup gained more strength from whale accumulation data. Since January 2024, whales have used On-chain data from Sentiment to acquire 140 million DOGE, raising their total amount from 8.85 billion to 8.99 billion.

Long-term confidence signals emerged from those addresses since they affect price trends. The Mean Dollar Invested Age (MDIA) of DOGE reached its highest point at 116.0. It signified robust investor holding behavior.

The next level to watch is a breakout above $0.2285. That would be the highest swing since March 9. If Dogecoin price can stay above current support and move past this resistance, it could signal a broader bullish trend. However, if DOGE price falls below $0.1275, the lower support at $0.0930 may come into focus.