Dogecoin Signals Double Bottom Reversal, Hints at $0.25 Breakout

Dogecoin is showing signs of a double bottom reversal pattern. With rising open interest and bullish divergence, DOGE targets a breakout toward $0.25.

While meme coins struggle to sustain momentum, especially with Bitcoin crashing below the $108,000 level, Dogecoin is holding steady at $0.21. The DOGE meme coin hints at a potential double bottom reversal, aiming for $0.25 as it attempts to defy broader market trends.

Dogecoin Hints at Consolidation Breakout

On the 4-hour price chart, Dogecoin maintains a sideways trend between $0.2177 and the $0.25 supply zone. Currently, Dogecoin is consolidating near the lower boundary, facing short-term resistance at $0.2302.

This consolidation pattern hints at a potential double bottom reversal, which could challenge the upper resistance level. The $0.2302 resistance acts as the neckline of the double bottom formation.

Supporting the potential for upside movement, the MACD and signal lines are on the verge of a bullish crossover. Additionally, the MACD line reflects bullish divergence within the double bottom pattern.

However, the Supertrend indicator still signals a bearish trend in motion. The meme coin must break above the $0.2349 level to confirm a bullish reversal.

According to Fibonacci retracement levels, a short-term resistance lies near $0.2401, aligning with the 23.60% level. Therefore, the price action suggests multiple short-term hurdles before DOGE can test the $0.25 supply zone.

Optimistically, a successful breakout from the double bottom pattern could challenge the $0.25 zone. If Dogecoin surpasses the consolidation range, Fibonacci levels indicate a potential upside target of $0.2680.

On the downside, a key support level lies just below the $0.2177 zone, at the previous low of $0.2037.

Derivatives Data Signal Mixed Sentiments

As Dogecoin hints at a bullish reversal, the derivatives market shows a surge in mixed sentiment. According to Coinglass data, Dogecoin’s open interest has increased by 2.89%, reaching $2.71 billion. This rise in open interest reflects growing trader activity, likely in anticipation of a sharp price move.

The bullish intent is underscored by a rising, over-weighted funding rate, now at 0.0070%. However, liquidations in the past 24 hours indicate bearish dominance, with long liquidations totaling $4.51 million, compared to just $1.41 million in short liquidations.

Despite the increase in long liquidations, the Dogecoin long-to-short ratio chart shows a rise in bullish positions. Long positions now account for 48.59%, up from 47.78% over the past 36 hours. This has pushed the long-to-short ratio from 0.915 to 0.945, reflecting an effort to balance sentiment in the market.