Dogecoin (DOGE) aims for a potential double-bottom breakout rally as bulls hold the fort at $0.20.
As the crypto market has witnessed a massive fall over the past three days, Dogecoin has held strong at the $0.20 psychological mark. After the recent crash, short-term consolidation above this key support hints at a potential comeback for Dogecoin.
Over the past 24 hours, meme coins like Shiba Inu and Pepe have recovered by 3.03% and 2.78%. Furthermore, double-digit gains are also seen in tokens like DogWifHat and ai16z. This reveals resurfacing support for meme coins at lower levels. Currently, Dogecoin is at a similar crossroads.
Dogecoin trades at a market price of $0.2092, holding a market cap of $30.91 billion. This accounts for more than 50% of the memecoin segment capitalization of $58.41 billion. Will a potential Dogecoin comeback revive bullish momentum in meme coins?
Dogecoin Liquidation Storm Hits $10M
Amid the heightened market volatility, Dogecoin liquidations have surged to $10.01 million over the past 24 hours. Long liquidations account for $7.4 million, while short liquidations are limited to $2.61 million.
The rising liquidations and declining price trends have driven the funding rate up to 0.0096%. This highlights a significant premium that bullish traders must pay to maintain their long positions.
Currently, Dogecoin’s long-to-short ratio remains at 0.9704, reflecting a slightly higher number of bearish positions. However, traders on major exchanges like Binance and OKEx remain optimistic, reporting long-to-short ratios of 3.755 and 5.14, respectively.
Meanwhile, Dogecoin’s open interest stands at $1.33 billion, marking a 2.37% increase in the past 24 hours. However, it is down by 67% in the last three months from the $4.07 billion peak.
#Dogecoin $DOGE open interest has declined by 67% over the past three months, dropping from an all-time high of $4.07 billion to just $1.33 billion today! pic.twitter.com/yRXjqqljNC
— Ali (@ali_charts) February 27, 2025
DOGE Eyes Double-Bottom Reversal
The Dogecoin price trend struggles to maintain dominance above its $0.20 psychological support amid increased volatility. With multiple low-price rejections, Dogecoin has formed a double-bottom pattern with a neckline at $0.2139.
Over the past 12 hours, Dogecoin created three consecutive bullish candles, marking a price surge of 5.27%. As Dogecoin is on the verge of reversing last night’s fall, the chances of a bullish pattern breakout are significantly rising.
In case of a breakout rally, the uptrend will likely challenge the 50-EMA line at $0.2294, close to the overhead trend line. On the flip side, crucial support remains at the $0.1953 base level.
Closing below this support could push Dogecoin towards the $0.15 psychological support.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
