Usman Salis
After surging 132% since early October, Dogecoin is now consolidating around a key support zone. Traders are focused on the $0.17-$0.18 area, where a brief dip below support could trigger a bullish reversal. This technical setup has DOGE positioned for either a bounce to $0.21 or a deeper correction if support fails.
Current Market Position
Dogecoin is trading around $0.19 after pulling back from recent highs. Crypto trader Crypto Bully noted the impressive gains from October's low and identified a critical demand zone between $0.17 and $0.18. This level previously acted as strong support and now forms equal lows on the 2-hour chart, suggesting clustered stop orders and available liquidity below. Traders expect a "sweep" pattern where price briefly drops below support to trigger stops before reclaiming the level and rallying.
Key Levels and Outlook
The demand zone sits at $0.17-$0.18, with an upside target of $0.21-$0.22 if bulls defend this area. A liquidity sweep followed by reclaim would signal renewed buying strength and likely push DOGE toward resistance near $0.21. However, sustained closes below $0.17 would invalidate the bullish structure and open the door to deeper losses toward $0.16. This zone has historical significance from earlier consolidation phases, making it a psychologically important level where price must either hold or break decisively. With renewed strength in altcoins and capital rotating from Bitcoin, volatility around this $0.17 support could determine DOGE's next directional move.
Usman Salis
