Dogecoin [DOGE] Surged 15.76% Recovering Its Weekly Losses and Breaking Past the $0.20 Level

DOGE surged 15.76% in a single day, recovering its weekly losses and breaking past the $0.20 level. The sharp rally was driven by whale accumulation, with an

Dogecoin price today surged 15.76% to recover its weekly losses and break past the $0.20 level. The sharp rally was driven by whale accumulation, as seen by an addition of 140 million DOGE to major holdings.

As both macro and on-chain signals align for a potential breakout, a key test arises: Can DOGE sustain the uptrend and establish $0.20 as a support level?

On its 1-day chart, DOGE has already retraced over 50% of its post-election gains. It’s currently forming three consecutive lower lows and trades at $0.227 at press time.

Despite the pullback, technical indicators suggest a potential reversal. The Relative Strength Index (RSI) is bottoming out, indicating oversold conditions.

Plus, a bullish MACD crossover suggests growing upside momentum.

Moreover, volume has spiked 252% to $3.71 billion, attesting to the heightened buying pressure.

Source: TradingView (DOGE/USDT)

Additionally, with another “Trump pump” driving up global liquidity, we’ve seen $10.10 million in short positions liquidated, ultimately decreasing selling pressure.

As such, DOGE is now approaching the critical $0.25 resistance. A breakout from this level could confirm further upside potential.

However, with the crypto market cap surging 8% to reclaim $3 trillion, the key question arises: Is DOGE’s surge merely a short-term reaction to increased liquidity following the Trump-driven market boost? Or, is this the start of a more sustained uptrend?

Is this a relief rally or a sustained uptrend?

At the time of writing, DOGE has pulled back 7.66% from its 15.76% single-day surge to reach $0.242. A strong red candlestick is forming, signaling increased selling pressure. This adds to AMBCrypto’s uncertainty about a confirmed bullish breakout.

In derivatives, Open Interest (OI) has seen a 10.57% surge to reach $2.03 billion, highlighting increased speculative activity.

However, with weak spot demand, DOGE faces the risk of a long squeeze. Overleveraged positions could trigger a cascading liquidation of approximately $280 million across both longs and shorts.

Source: Coinglass

The coming days will be pivotal. If market buyers take profits, DOGE risks turning its recent rally into a “sell-the-news” event. This makes a decisive hold above $0.20 uncertain, as longs face liquidation risks.

On the flip side, a breakout past $0.25 is crucial to force short-covering and extend the rally’s momentum.

At press time, OI has decreased by over 4%, signaling that futures traders are closing their positions after securing profits, which increases sell-side liquidity.

For bulls, the focus now shifts to spot demand. If bulls step in, we could see DOGE consolidate in a holding pattern. Otherwise, a dip below $0.20 remains a looming threat.