Dogecoin is showing early signs of bouncing back after a brutal week that shook the crypto market, as traders closely watch key support levels for a potential rebound.
The meme coin’s recent volatility wiped out leveraged positions and rattled investor confidence, but technical indicators suggest DOGE may be finding its footing. Analysts are now eyeing the $0.18 support as a critical line that could define the next phase of recovery.
Support at $0.18: A Key Defensive Line for Dogecoin
Dogecoin has recently established a critical support floor near the $0.18 mark, providing much-needed stability amid ongoing market fluctuations. This level has become a focal point for traders, as maintaining it could prevent a sharper decline and preserve bullish sentiment in the near term. Analysts note that repeated tests of this zone without a breakdown indicate a strong base, reinforcing confidence among market participants.
Dogecoin’s falling wedge signals a potential return to its long-term uptrend. Source: jhonnybrah on TradingView
Historical price charts indicate that the $0.18 region has repeatedly served as a pivot point, where buyers step in to counteract selling pressure. By holding this key line, DOGE preserves the structure necessary for potential upward moves, while a breach could expose lower support zones and increase volatility. Maintaining this defensive level is therefore critical for sustaining momentum and keeping the cryptocurrency on track for its longer-term recovery.
Gann Arc Backtest Strengthens the Bullish Case
Technical observers point to a successful backtest of an upper Gann Arc on DOGE’s weekly chart as a reinforcing signal. The arc retest reportedly “did something very unexpected … backtested the top arc successfully again while still making consistent higher lows.”
Dogecoin backtested the upper Gann arc, indicating a potential bullish reversal. Source: The Great Mattsby via X
That interplay suggests geometric resistance is now potentially turning into support, aligning with principles of Gann theory. Gann indicators, such as arcs and angles, combine time and price geometry, and many traders regard a clean re-entry after a backtest as a valid confirmation of trend continuity.
The Falling Wedge: A Reversal Setup in Play
Layered atop the support and arc signals is a falling wedge formation—characterized by converging downward trendlines as price compresses. In many charting frameworks, such a pattern hints that downward pressure is fading and a breakout to the upside is possible.
If DOGE can break above the upper boundary of this wedge, it might mark a shift from consolidation or a mild downtrend back into a resumption of gains.
Liquidation Turmoil: Shakeouts or Start of a Bull Phase?
In recent sessions, the crypto market has seen massive long-liquidation events. Over $16 billion in long positions were reportedly liquidated after global markets reacted to geopolitical and tariff announcements.
All Dogecoin longs were liquidated, a move often seen as a precursor to a potential bull market. Source: Cephii via X
For Dogecoin specifically, estimates suggest over $20 million of long leverage was unwound in one snapshot window. Analysts interpret this as part of shakeouts historically seen at the start of strong bull runs—suggesting that purging weak hands may set the stage for sustained upward movement if technical conditions align.
Risks & What Could Go Wrong
Despite the compelling bullish signals, several risks could challenge Dogecoin’s upward momentum. A false breakout from the falling wedge may occur, where DOGE briefly rises above the upper trendline but fails to hold, reversing downward. Additionally, low buying volume during a breakout could weaken follow-through, reducing the strength of any upward move.
External factors, such as macro shocks or sudden regulatory changes, could also override technical patterns and affect price action. Finally, a sustained drop below the $0.18 support level would undermine the current bullish outlook and could expose lower price levels, putting the longer-term recovery at risk.
Outlook & Key Levels to Watch
If Dogecoin successfully breaks above the falling wedge, it could move toward intermediate resistance levels between $0.22 and $0.28, providing potential upside for traders and investors.
Dogecoin was trading at around $0.19, down 22.05% in the last 24 hours at press time. Source: Brave New Coin
On the downside, the $0.18 support remains a crucial line; a sustained drop below this level could push DOGE toward $0.14 or lower, reflecting past correction patterns. Analysts will also monitor whether the price can retest the upper boundary of the wedge after a breakout and hold it as new support, which would help confirm the strength of any upward move.
Final Thoughts
At present, Dogecoin displays a confluence of bullish setups: solid support near $0.18, a Gann Arc retest, and a falling wedge pattern that may reverse the recent drag. If the breakout materializes on strong volume, this could mark the next leg upward in DOGE’s broader bullish structure.
However, traders should monitor price action closely and employ proper risk management, as even strong technical confluences can fail under macro pressure.