Dogecoin Price Eyes Breakout as Buy Signal Sparks Market Buzz

Technical indicators show an impending price rally in Dogecoin (DOGE), after it reclaim $0.22. Market movement could follow the breakout above $0.22 due to $644 million worth of leveraged positions at risk.

TD Sequential Indicator Suggests Rebound

The TD Sequential indicator triggered a buy signal during Dogecoin’s daily timeframe which indicates exhaustion in existing trends. The price pattern tends to occur before a price rally emerges to mark potential regions where market selling power declines.

The indicator has proven its ability to correctly identify key market turns in Dogecoin thus making it a widely tracked indicator for traders.

Source: X

Coinglass’s liquidation heatmap shows a total amount of $644 million in liquidation positions exists within the price range around $0.21.

The Dogecoin price could begin a short squeeze. This could prompt traders using bearish bets to close their positions because Dogecoin successfully breaks through the $0.21 resistance zone.

To sustain an upward trend buyers need to push the price above $0.22. This resistance area displays high concentration according to heatmap analysis.

Dogecoin Price Technical Analysis and Market Outlook

The four-hour timeframe demonstrates a minimal uptrend correction according to technical analysis.

Proof indicates a consistent downward trend as the price remains underneath both EMA lines at 50 (red) and 100 (blue) periods. This establishes bearish market conditions. The current price increase exceeded its static moving averages signaling either a new trend orientation or temporary rebound possibility.

The price experienced a temporary pullback while it demonstrated support at the former resistance level which matched $0.24.

Bullish momentum has the potential to resume if the price holds its current level. This is because it could drive DOGE toward the $0.26 resistance area. A price decline might occur if investors fail to support the current level at $0.22.

The Awesome Oscillator has undergone a position change into green while displaying robust upward momentum to support the latest price escalation. The rising bullish attitude indicates an upward trend but market strength depends on buyer ability to preserve current gains.

4-hour DOGE/USDT Chart | Source: TradingView

The prices center around the moving averages in a bearish trend because the 50 EMA stays below the 100 EMA which requires additional confirming signs for an uptrend by Dogecoin. The price forecast would strengthen as the 50 EMA moves above the 100 EMA to create a golden cross formation.

DOGE Price Expectations

The next important resistance levels for bulls exist at $0.26 followed by $0.28. These are the locations of previous market sell-offs. If $0.22 and $0.21 are tested these levels could activate another upward movement.

DOGE currently faces a crucial turning point as a breakout from resistance will shape its upcoming trend. Conversely, a rejection will determine its next direction. Volume verification together with renewed assessments of vital price points will determine the market’s next steps.