DOGE Faces Resistance After Bullish Breakout, But 'Cup and Handle' Formations Suggest Upward Potential
Crypto/Finance
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DOGE Faces Resistance After Bullish Breakout, But 'Cup and Handle' Formations Suggest Upward Potential

Dogecoin's recent spike has raised interest as traders anticipate further upward movement despite current resistance levels.

Key Information:

  • Dogecoin experienced a significant 6% increase during the trading session from July 9 to 10, breaking through resistance, although it faced a sharp reversal at the end of the session.
  • Market sentiment was buoyed since the U.S. extended its tariff deadline, increasing expectations of a Federal Reserve rate cut.
  • The current price resistance is noted at $0.186, a crucial level for traders.

News Background: Trade Pause and Rate Adjustments Propel Risk Rally

  • Improvement in market mood followed the U.S. tariff deadline extension, which allows for further trade discussions, alleviating short-term pressures on risk assets.
  • Anticipations arise for a Fed rate cut in July as major banks predict cuts between 25 and 100 basis points if upcoming inflation reports disappoint expectations.
  • These economic developments have provided the crypto markets with a favorable environment, driving DOGE and other volatile assets upwards from critical support levels.

Price Fluctuation Summary

  • DOGE climbed 6% from $0.170 to $0.186 between July 9 at 03:00 and July 10 at 02:00.
  • A breakout occurred between 19:00 and 20:00 on July 9, with prices rising by $0.007 and trading volume reaching 1.52 billion, nearly exceeding the 24-hour average.
  • A strong resistance level manifested at $0.186, where prices repeatedly faced rejection amidst high volume.
  • Support held stable around $0.180–$0.181 as the session concluded.
  • In the last hour (02:28–03:27), DOGE dropped 0.55% from $0.181 to $0.180, creating a definitive reversal pattern alongside rising downward momentum.

Technical Evaluation

  • Price Range: A fluctuation of $0.016 or 9.23% between the low of $0.170 and high of $0.186.
  • Resistance: The peak was at $0.186, which faced repeated high-volume rejections between 21:00 and 23:00.
  • Support: The $0.180–$0.181 zone stood firm during the close but began to falter during late-session selloff.
  • Breakdown: The 02:28–03:27 session saw successive breaks of support levels at $0.1808, $0.1806, and $0.1803 under significant sell volume, indicating institutional selloff activity.
  • Volume: 1.52 billion during the breakout, with 4.9 million in the final reversal, confirming both bullish entries and bearish exits.

Trader Monitoring Points

  • Can DOGE overcome $0.186 and convert it into support? Look for continued volume above this threshold.
  • Should the decline persist, the next support levels to watch may be $0.176 and $0.172, based on prior consolidation.
  • RSI and OBV metrics on shorter timelines signal potential short-term exhaustion; however, overarching sentiment remains positive overall.
  • The rally range from July 9–10 could play a role as the “handle” in a broader weekly cup-and-handle pattern; further validation would require a breakout above $0.195 on amplified volume.
Next article

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