After consolidating inside before it means different, and Dogecoin price today he is showing the first signs of recovery. The price has defended the key area near $0.071 as buyers regained control of several weeks of pressure to sell. Memecoin has started to go down again, as the trend is starting to improve. This indicates a potential change in the short-term, while the closing data indicates the possibility of a short-term squeeze.
Can the price of Dogecoin break through resistance and extend the current recovery to $0.08?
Dogecoin Has Great Support as Bulls Challenge Trendline Resistance
Dogecoin has increased after successfully defending the $0.071-$0.072 desired zone, a level that has repeatedly attracted buyers in the past few weeks. The daily chart shows that DOGE is rising from this support as it tries to break the trend that has supported the recovery since late June.
The Relative Strength Index (RSI) has risen to around 45, recovering from oversold territory and pointing to a buying trend. However, the indicator remains below the 50 mark, which means that the bulls still need a strong follow-up to ensure a sustainable change. Besides, the Bollinger bands are showing signs of a decline that often leads to price action, possibly above the band’s resistance at $0.076.
Short Liquidation Cluster Signals Potential Upside Acceleration
Beyond the price chart, derivatives also support the possibility of a strong recovery. According to CoinGlass’s 30-day daily chart, the maximum closing range is between $0.075 and $0.081, above DOGE’s current trade. This shows that many traders are betting deep, creating a source of fuel to move. At the same time, the closed map shows the few elimination groups below the current value. This suggests that most of the downside liquidation pressure has already been taken.
If Dogecoin can break above the resistance near $0.074, these short positions may begin to unwind, forcing traders to recoup their positions. This type of action, known as a short-term squeeze, often increases risk and raises short-term prices. As a result, a definite breakout above the descending trend line would encourage DOGE to target the $0.076-$0.081 liquidity zone in the near future.
Can DOGE Price Reach $0.08?
The direction of Dogecoin will depend on whether the buyers can sustain the recovery and retrace the major resistance levels. A move above an impending problem can attract renewed buying interest and trigger the elimination of short positions, which can accelerate the move.
The first challenge is around $0.074-$0.076; Closer to this limit would indicate a strengthening effect. On the downside, support at $0.071 is still a watchable level. A loss of this share would trigger the current rebound setup and show the meme currency for a deeper correction to $0.069 or lower.
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