Usman Salis
Dogecoin (DOGE) has reached a critical juncture that could determine its next major price movement. After facing rejection at a key resistance level, the meme coin has retreated to a previously identified support zone, creating what technical analysts are calling a "binary" setup. With traders watching for potential reversal signals, DOGE's price action in the coming sessions could set the tone for its near-term trajectory.
DOGE Finds Support After Getting Rejected
Dogecoin (DOGE) is sitting at a pretty important spot right now. Trader Sun Liao pointed out on X that DOGE just touched a strong magenta support area that used to act as major resistance. What happens next could really shape where the price goes from here.
Looking at the chart, DOGE recently pushed up to that magenta resistance zone around $0.278 but couldn't break through. Since then, it's dropped down to the lower magenta support area near $0.21975, and that's where all eyes are focused now.
Sun Liao had actually called this level ahead of time, saying they got a "PERFECT touch." He's pointing out that these kinds of setups are pretty straightforward – either the candle closes above this zone or we're heading lower.
Watching for the Blue Diamond Signal
Here's where things get interesting. Sun thinks a blue diamond signal might show up soon, which would basically be a sign that the price could bounce back up. "If we get a blue diamond here soon… be ready!" he tweeted.
So now it's a waiting game. If that signal actually appears and DOGE manages to stay above this support level, we might see it start climbing back toward that upper magenta band and maybe even test those cycle highs again. But if it breaks below? Well, that's a different story entirely.
Usman Salis
