Dogecoin price remains supported above $0.225, preserving bullish trajectory despite a 5.8% retracement from $0.25
RSI crossover from May 7 continues to hold, with short-term momentum at 71 versus 59 signal line
Derivatives data shows $20.15M in liquidations with open interest dropping 7.29% to $2.80 billion
Multiple analysts predict a potential breakout toward $0.30-$0.32 if Bitcoin stabilizes above $104K
Some bullish forecasts suggest DOGE could eventually target $0.75 or even $1 if current momentum persists
Dogecoin has staged a remarkable recovery in recent days, with its price holding steady above the critical $0.225 support level. This comes after a minor 5.8% pullback on Sunday, May 11, following several days of double-digit gains.
The popular meme cryptocurrency is currently trading at $0.2341, according to the latest market data. Despite this short-term correction, technical indicators remain positive.
The most telling signal comes from the 5-day Relative Strength Index (RSI), which shows a decisive crossover that occurred on May 7. This technical pattern, where the shorter-term momentum line (at 71) crosses above the longer-term signal line (at 59), typically suggests continued upward movement.
Trading volume has seen some decrease, dropping from $4.5 billion to $3.5 billion in 24 hours. This indicates investors may be taking a cautious approach while awaiting clearer market direction.
The derivatives market paints an interesting picture of Dogecoin’s current standing. Total open interest has fallen by 7.29% to $2.80 billion, while daily trading volume contracted by 19.55% to $7.74 billion.
Perhaps most telling is the liquidation data showing $20.15 million in total DOGE positions were wiped out over the past 24 hours. Approximately 75% of these were long positions, suggesting that over-leveraged bullish bets were cleared out when prices dipped below $0.25.
The Technical Picture
The current price structure for DOGE remains intact as long as the $0.225 support holds firm. The cryptocurrency has established a clear higher low (HL) structure earlier in its rally, followed by a new local higher high (LH), reinforcing a developing bullish sequence.
This pattern, combined with continued support above the lower bound of the SuperTrend at $0.191, suggests that the broader upward structure remains valid. The movement is likely to resume upward if the current consolidation resolves positively.
Chart patterns show DOGE approaching a key resistance area around $0.25. Breaking through this level with strong volume could trigger a move toward the $0.30 zone, according to several market analysts.
The current setup appears particularly promising because of the lack of social media attention on Dogecoin. Some traders view this relative quiet as a contrarian indicator, potentially signaling a calm before the storm.
Market Influences
Bitcoin’s price action continues to have a strong influence on Dogecoin’s movements. As long as Bitcoin maintains positions above $104,000, DOGE has a greater chance of resuming its upward trajectory.
Recent positive developments include Donald Trump’s confirmation of successful trade talks with China, which helped push Bitcoin to new heights. However, geopolitical tensions, particularly between India and Pakistan in the last 48 hours, have dampened enthusiasm for more volatile assets like memecoins.
Strategic traders are now watching for Bitcoin ETF flows and upcoming U.S. macroeconomic data releases this week. If institutional appetite for crypto remains strong, meme coins like DOGE could quickly resume their upward momentum.
The risk remains tilted to the downside if Bitcoin fails to hold above $100,000. A drop below $0.225 could trigger another round of liquidations, temporarily invalidating the bullish thesis.
Long/short ratios provide a mixed view of market sentiment. While account-based ratios on major exchanges show moderate bullish positioning at around 2.8, the top trader long/short position ratio exceeds 5.00, suggesting high conviction from larger market participants.
The price correction we’ve seen appears to be part of a healthy market cycle, allowing for profit-taking after rapid gains. With current support levels holding, many analysts believe DOGE is simply taking a breather before its next leg up.
For the week ahead, a daily candle close above $0.25 would be a key confirmation of renewed momentum, particularly if accompanied by increased trading volume.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
Target hit on this cup & handle pattern called last week
https://t.co/LuBAPCj1qZ pic.twitter.com/7YGzP11qfF
