Dogecoin has bounced off the $0.071-$0.072 demand zone and is pressing against a descending trendline that has capped every recovery since late June. CoinGlass liquidation data shows short positions clustered between $0.075 and $0.081, above the current range. Losing $0.071 would invalidate the rebound setup.
Dogecoin has rebounded after defending the $0.071-$0.072 demand zone, a level that has repeatedly attracted buyers over the past few weeks. The daily chart shows DOGE bouncing from that support while attempting to break above a descending trendline that has capped every recovery since late June.
Momentum improves but stays under neutral
The Relative Strength Index has climbed to around 45, recovering from oversold territory and pointing to improving buying momentum. However, the indicator remains below the neutral 50 mark, suggesting bulls still need stronger follow-through to confirm a sustained trend reversal. The Bollinger bands are also showing signs of a contraction that usually results in significant price action, probably above the band's resistance at $0.076.
Short liquidations stack above the current range
Derivatives data also supports the possibility of a stronger recovery. According to CoinGlass' 30-day liquidation map, a significant concentration of short liquidations sits between $0.075 and $0.081, well above DOGE's current trading range. That suggests many traders are betting on further downside, creating a potential fuel source for an upside move.
At the same time, the map shows relatively fewer long liquidation clusters below the current price, which indicates that much of the downside liquidation pressure has already been absorbed. If Dogecoin breaks above the immediate resistance near $0.074, those leveraged short positions could begin to unwind, forcing traders to buy back their positions. Such a chain reaction, commonly known as a short squeeze, often amplifies bullish momentum and drives prices higher over a short period.
What decides the next move
Dogecoin's near-term trajectory will likely depend on whether buyers can sustain the current recovery and reclaim key resistance levels. A confirmed breakout above the descending trendline may encourage DOGE to target the $0.076-$0.081 liquidity zone in the near term.
The first hurdle lies around $0.074-$0.076, and a sustained close above that range would signal strengthening bullish momentum. On the downside, losing the $0.071 support would invalidate the current rebound setup and expose the meme coin to a deeper correction toward $0.069 or lower.
Source: Coinpedia Fintech News
Trading involves risk.
Risk Disclaimer
