Dogecoin forms ‘cup and handle’ – Watch THESE levels closely!

Key Takeaways

• DOGE rebounded from $0.14 support, showing bullish momentum. Rising spot demand, exchange outflows, and Futures interest suggest a potential breakout toward $0.25 if resistance is cleared.

Dogecoin [DOGE] rebounds from $0.14 support, gaining momentum after forming a rounded bottom and confirming a cup-and-handle breakout.

This move placed the price back inside a parallel channel, with current price action hovering around $0.182. 

If DOGE breaks above $0.198, bulls could push for the $0.25 level in the coming weeks. However, any rejection near the mid-channel zone may cause consolidation. 

The pattern’s symmetry and previous response to support suggest bulls are still in control, but confirmation depends on holding above $0.16 going forward.

Source: TradingView

Are spot buyers laying the foundation for a stronger Dogecoin rally?

Over the last 90 days, DOGE’s cumulative volume delta (CVD) on spot markets has consistently leaned in favor of taker buys, suggesting that aggressive buyers continue to dominate. 

This buyer dominance strengthens the possibility of continuation, as it reflects confidence even during corrective phases.

Historically, such dominance has aligned with short-term upward breakouts, particularly when combined with bullish technical patterns. 

Therefore, the sustained pressure from spot buyers supports a bullish outlook. However, a weakening in this volume profile could expose DOGE to downside risks if bulls fail to clear key resistance levels.

Source: CryptoQuant

Why are traders pulling Dogecoin from exchanges?

Spot Netflow data reveals that over $8.5 million in DOGE was pulled from exchanges on the 10th of July alone. This extends a broader trend of sustained outflows, pointing to investor preference for self-custody or long-term holding strategies. 

Such behavior often precedes accumulation phases, as participants move funds off exchanges to reduce sell-side pressure. 

While this does not guarantee price increases, it reduces the availability of DOGE for immediate sale, potentially tightening supply.

However, if these outflows reverse unexpectedly, it may signal profit-taking, which could pressure price recovery efforts.

Source: Coinglass

Could derivatives data signal the next major move for DOGE?

At the time of writing, Open Interest surged sharply by 15.09% to $2.44 billion, reflecting a renewed influx of capital into DOGE futures. 

At the same time, Funding Rates remained positive at +0.0093%, indicating that long positions are paying short traders, an early sign of bullish conviction.

This combination of increasing exposure and sustained optimism highlights growing confidence from derivatives traders. 

However, excessive leverage without spot market support could lead to forced liquidations. For now, the data supports continuation, but traders should monitor for shifts in funding or aggressive OI spikes.

Source: CoinGlass

Can DOGE sustain momentum or…

Dogecoin’s bounce from support, rising Open Interest, and strong buyer dominance suggest bullish continuation.

However, the $0.198 resistance remains a critical hurdle. 

A successful breakout could pave the way to $0.25, while rejection might trigger another pullback.

For now, on-chain and technical signals lean bullish, but sustained momentum will depend on follow-through volume and broader market stability in the coming sessions.