Key Insights:
- Dogecoin price bounced 11.36% from $0.1643, confirming a falling wedge breakout with a target near $0.2561.
- 67.84% of Binance traders were long on DOGE as open interest hit $1.81B, showing strong bullish sentiment.
- Dogecoin price held above key $0.20 trendline.
Dogecoin (DOGE) price continues to attract investor interest as it holds above a long-standing ascending trendline that has been active since early 2023. After dipping to a 7-day low of $0.1643, DOGE bounced sharply. That move suggested buyers started stepping in near critical support.
Analysts pointed to the $0.165-$0.200 zone as a key area for accumulation, reinforced by technical confluence, market activity, and increased long positions.
Dogecoin Price Bounces from Trendline Support Near $0.14
Dogecoin price has maintained a consistent uptrend supported by a trendline, dating back to early 2023. This trendline recently aligned with the 0.5 Fibonacci retracement level near $0.165.
The confluence of these two technical indicators has increased buying pressure around that zone. It resulted in a short-term price recovery.
Ali Martinez, a technical analyst data on X, mentioned that DOGE has respected this trendline since October 2024. He noted, “A dip to $0.14 could offer a buying opportunity if the trendline continues to hold.”
According to the weekly candle analysis, the price has bounced multiple times from this area. It means traders are viewing this zone as a potential long entry point.
Source: X
When writing, the Dogecoin price near $0.20 showed an 12% increase from the weekly low. It signaled a short-term bullish reversal.
The bounce also confirmed the relevance of the trendline, as each pullback has resulted in renewed upward momentum. The 0.5 Fibonacci level at $0.165 remains a technical pivot point.
Falling Wedge Breakout Signals Bullish Momentum for DOGE
On the 4-hour chart, Doge has recently fully confirmed a breakout from the falling wedge pattern. This pattern was formed after a sequence of lower highs consecutively accompanied by lower lows in the two-week period.
According to TradingView data, a breakout was confirmed after a four-hour candlestick closed above the upper trendline of the wedge. After the breakout, DOGE price rallied to $0.1810 and continued to push toward the 78.6% Fibonacci level at $0.1860.
Analysts project a move toward $0.2042–$0.2061 based on wedge pattern calculations if that level could be breached. The target was estimated by measuring the wedge’s height and adding it to the breakout level of $0.300.
Source: TradingView
Market sentiment also follows this template of a bullish breakout. As data highlighted by CoinGlass showed, open interest in DOGE futures increased by 7.19% within a day to touch $1.81 billion.
Further, 67.84% of traders on Binance were long-term traders. The funding rate went back to 0.0051% to send the signal that traders were bullish and willing to pay to hold their positions.
Rising Open Interest and Liquidation Data Reflect Strong Market Activity
From May 5 to May 7, Dogecoin price experienced a decline that led to modest liquidations of long positions. According to CoinGlass, these liquidations occurred as the price fell toward the $0.164 zone.
However, on May 8, the price rose above $0.18. There was also a large short liquidation worth $3.71 million.
The next target of DOGE’s price move could be the $0.300 level, which corresponds to 78.6% of the Fibonacci retracement. However, if bulls can break through this level, the next level of resistance is between $0.2042 and $0.2061.
These levels correspond to the price objective on the micro and mini charts of the falling wedge pattern.
Source: CoinGlass
Support levels remain clearly defined. The $0.1729 and $0.1642 zones have acted as recent price floors. The trading activity also suggests strong interest from buyers in these support areas.
If Dogecoin price drops below $0.1642, the next possible retracement could move toward the 0.382 Fibonacci level at $0.1283.
