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Dogecoin holds steady above $0.20, eyeing a 48% surge as bullish patterns emerge. Derivatives data and key EMAs suggest a potential breakout ahead.
As Bitcoin’s price remains above the $109,000 mark, the meme coin market cap has resurfaced above $72 billion. Leading this short-term recovery is Dogecoin, which has gained 4% in the past 24 hours.
With Dogecoin holding firmly above the key psychological level of $0.20, the possibility of an inverted head-and-shoulders pattern breakout remains.
Dogecoin Price Analysis
On the daily chart, Dogecoin formed a bearish engulfing candle on May 23, reflecting an 8.29% pullback. This pullback challenged the breakout potential of the inverted head-and-shoulders pattern, as the price retraced from a long-standing resistance trendline.
Despite this, Dogecoin remains above the 23.60% Fibonacci retracement level at $0.2179, supported by a lower price rejection. A long-tailed doji candle formed on Sunday, and Dogecoin is currently trading at $0.2266, showing an intraday gain of 0.82%.
Furthermore, the price holds above the 200-day EMA, which aligns closely with the 23.60% Fibonacci level. Despite short-term weakness, the underlying bullish sentiment supports the potential for a breakout rally.
The 50-day and 100-day EMA lines are trending toward a bullish crossover. Meanwhile, the RSI remains flat above the midpoint, indicating a potential bullish reversal with room for further growth.
DOGE Price Targets
Based on the Fibonacci levels and the inverted head-and-shoulders pattern, a breakout could propel Dogecoin toward the $0.3830 level, representing a 48% surge.
However, a daily close below the 23.60% Fibonacci level would invalidate this bullish setup. In that scenario, immediate support lies at the 50-day EMA near $0.20, followed by the $0.14 level.
Dogecoin Derivatives Data Supports Bullish Intent
As Dogecoin stands at a crossroads due to the short-term bullish failure, the derivatives market remains optimistic. As per Coinglass data, Dogecoin’s open interest has jumped by 7.44%, with the broader market recovery pushing the total to $2.70 billion. This suggests growing trader activity in Dogecoin, further supported by a rising funding rate of 0.0081%.
This increase in open interest and funding rate reflects a rising bullish sentiment among derivatives traders who anticipate a breakout rally. Notably, options volume has surged by 60%, with open interest in options reaching $300,000.
Over the past 12 hours, Dogecoin’s recovery has triggered $2.4 million in short liquidations, while 24-hour liquidation data remains balanced. Overall, derivatives data maintain a bullish narrative, reinforcing the potential for a breakout.