Dogecoin (DOGE) Aims for a Potential Double-Bottom Breakout Rally as Bulls Hold the Fort at $0.20.

As the crypto market has witnessed a massive fall over the past three days, Dogecoin has held strong at the $0.20 psychological mark.

Dogecoin (DOGE) is aiming for a potential double-bottom breakout rally as bulls are holding the fort at the $0.20 psychological mark.

Dogecoin price analysis: $DOGE attempts to break double-bottom at $0.2139

As the crypto market has witnessed a massive fall over the past three days, Dogecoin has held strong at the $0.20 psychological mark. After the recent crash, short-term consolidation above this key support hints at a potential comeback for Dogecoin.

Over the past 24 hours, meme coins like Shiba Inu and Pepe have recovered by 3.03% and 2.78%. Furthermore, double-digit gains are also seen in tokens like DogWifHat and ai16z. This reveals resurfacing support for meme coins at lower levels. Currently, Dogecoin is at a similar crossroads.

Dogecoin is trading hands at a market price of $0.2092, holding a market cap of $30.91 billion. This accounts for more than 50% of the memecoin segment capitalization of $58.41 billion. Will a potential Dogecoin comeback revive bullish momentum in meme coins?

Dogecoin liquidation storm hits $10M

Amid the heightened market volatility, Dogecoin liquidations have surged to $10.01 million over the past 24 hours. Long liquidations account for $7.4 million, while short liquidations are limited to $2.61 million.

The rising liquidations and declining price trends have driven the funding rate up to 0.0096%. This highlights a significant premium that bullish traders must pay to maintain their long positions.

Currently, Dogecoin's long-to-short ratio remains at 0.9704, reflecting a slightly higher number of bearish positions. However, traders on major exchanges like Binance and OKEx remain optimistic, reporting long-to-short ratios of 3.755 and 5.14, respectively.

Meanwhile, Dogecoin's open interest stands at $1.33 billion, marking a 2.37% increase in the past 24 hours. However, it is down by 67% in the last three months from the $4.07 billion peak.

DOGE price analysis: what's next for Dogecoin

The Dogecoin price trend is struggling to maintain dominance above its $0.20 psychological support amid heightened volatility. With multiple low-price rejections, Dogecoin has formed a double-bottom pattern with a neckline at $0.2139.

Over the past 12 hours, Dogecoin created three consecutive bullish candles, marking a price surge of 5.27%. As Dogecoin is on the verge of reversing last night's fall, the chances of a bullish pattern breakout are increasing significantly.

In the event of a breakout rally, the uptrend will likely challenge the 50-EMA line at $0.2294, which is closely aligned with the overhead trend line. On the other hand, crucial support is provided by the $0.1953 base level.

Closing below this support could push Dogecoin towards the $0.15 psychological support.