Dogecoin is currently trading near $0.072 after once again testing the critical $0.07 support level. Buyers defended this zone on Friday, but the subsequent rebound has yet to break through the nearest resistance barrier. The next direction for the meme coin hinges on whether it can hold above $0.07.
Dogecoin Tests Breakout After Double Bottom
Dogecoin recently climbed above a descending trendline that had capped gains since May. Trader Tardigrade linked this move to a double-bottom pattern near $0.07. The setup formed after the price touched the same support level twice and bounced back each time. This structure contrasts with the price action seen near the May peak, where two highs appeared before sellers took control. The current chart shows two lows at the same level, which may indicate weakening selling pressure. However, buyers must protect the breakout area to give the pattern stronger credibility.
Near-term resistance is between $0.075 and $0.079. Dogecoin reached $0.0753 on July 14, but buyers failed to hold that gain. The price then fell for two sessions before bouncing from $0.07. A close above $0.079 could open the door to $0.084, with the larger test zone between $0.09 and $0.10.
$0.07 Support Controls the Next Price Move
The $0.07 level sits within a broader demand zone stretching from $0.05 to $0.08. Dogecoin has traded around this area during previous market bottoms, and buyers have returned near the same range during the latest decline. Holding this zone does not confirm a full reversal. DOGE still needs higher weekly lows, stronger buying volume, and a break above $0.10. If that happens, traders may target $0.15 and $0.20, both of which were active trading levels during earlier rallies.
The downside scenario would strengthen if Dogecoin closes below $0.07 and fails to recover. Sellers could then target $0.067, followed by $0.065. A wider decline could pull the price deeper into the $0.05 to $0.08 band, weakening the early recovery setup and extending the current range.
Liquidation Data Shows Limited Pressure on Bears
CoinGlass recorded no Dogecoin short liquidations during a 12-hour period. Short liquidations occur when rising prices force bearish traders to close leveraged positions. The zero reading indicates that the rebound did not generate enough pressure to trigger forced exits during that window. Meanwhile, long traders faced losses: about $27,000 in long liquidations over 12 hours, and across a broader window, $153.82k in long liquidations versus $28.38k in short liquidations.
The narrow gap between the two sides aligns with Dogecoin’s limited daily price moves. DOGE traded about 0.96% higher near $0.072 at the time of the data. The absence of short liquidations may also suggest that bearish traders reduced risk after the earlier drop. A wider sell-off in chip stocks also affected crypto markets after a brief rally tied to softer inflation data. Dogecoin gave back part of its advance as traders reduced exposure to risk assets.
For now, $0.07 remains the key support, while $0.075 to $0.079 forms the first recovery barrier. The coming sessions will determine whether buyers can defend the line or if bears will extend the selloff toward $0.065.
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