Dogecoin Bulls Charge Ahead – Can $0.31 Be the Next Stop?
Dogecoin is making waves again. After climbing over 2% intraday to hit $0.2096, the meme-inspired crypto is setting its sights on a larger move toward $0.31. But the rally comes with risk: if the upward momentum holds, $31.85 million in short positions could be forced into liquidation—possibly igniting a classic short squeeze.
🔍 Quick Take:
- DOGE posts a 2.24% daily gain, now trading just shy of $0.21.
- A decisive move above $0.2135 could add fuel to the current uptrend.
- Over $6 million in short positions have already been liquidated in the last 24 hours.
- Technicals signal potential for a deeper breakout toward $0.31.
📊 Technical Setup: Classic Pattern Breakout in Play
Dogecoin has now stacked five green daily candles in a row, pushing its rally close to 30% over the past few days. On the technical chart, DOGE is showing signs of a rounding bottom breakout—a pattern often associated with trend reversals and longer-term bullish momentum.
The critical supply zone around $0.20 has been decisively broken, turning previous resistance into a support base. The chart shows that DOGE’s descent from $0.4846 to $0.1298 (a 75% drop between December 8, 2024, and April 7, 2025) found a bottom, and the recovery has been gaining steam ever since.
The May 9 daily close at $0.2049 confirmed the breakout, setting up the rounding bottom’s full upside potential. Based on pattern depth, analysts now estimate a target around $0.3159—not far off from DOGE’s near-term psychological level of $0.31.
📈 Indicators Back the Bulls
The Supertrend Indicator flipped bullish with a breakout over $0.1863, a key validation point for momentum traders. Meanwhile, the MACD and signal lines have shifted back into positive alignment, recovering from several fake crossovers during prior sideways price action. These signals point to strengthening momentum beneath the surface.
Also worth noting: Fibonacci retracement levels drawn across DOGE’s previous downtrend place the 50% retrace at $0.3040. A move through that level would further validate bullish sentiment and may open the door to even higher price action beyond $0.31.
💥 What’s Fueling This Push?
Aside from the favorable technicals, open interest (OI) for Dogecoin continues to rise—a sign that more traders are jumping into the trend with conviction. And with short liquidations already totaling $6 million, the possibility of a larger $31.85 million short squeeze looms if DOGE gains just another 2% from here.
⚠️ Key Levels to Watch
- Immediate resistance: $0.2135
- Target zone: $0.3040 – $0.3159
- Support to hold: $0.20 (psychological)
- Breakdown risk: $0.1411 (support base if trend fails)
Should Dogecoin slip back below $0.20, the bullish setup would be in jeopardy, putting lower levels like $0.1411 back in play. For now, though, the bulls remain firmly in control.
