Dogecoin [DOGE] is once again in the spotlight after the TD Sequential indicator signaled a buy on the 4-hour chart, suggesting a potential short-term rebound. At press time, DOGE was trading at $0.218, sitting just above a crucial support zone after several weeks of steady decline.
Can Dogecoin push toward $0.42?
On the daily chart, analysts noted the formation of a cup-and-handle pattern, a bullish continuation structure that could fuel Dogecoin’s next big move. To confirm the setup, DOGE must break through its neckline resistance.
If DOGE clears $0.244 and $0.277 with volume, momentum could accelerate toward $0.42, the projected objective of the pattern. Failure to overcome these barriers risks trapping bulls and stalling upside momentum in the short term.
Traders bet on a bullish breakout
Market positioning on Binance derivatives remains firmly optimistic. Long accounts dominate with roughly 75% share vs. 25% shorts. This skew reflects expectations of a rebound and supports the bullish technical context. That said, heavy long exposure can amplify risk if price pulls back, though the liquidity wall from longs could help propel price once resistance is tested.
Liquidation clusters may fuel volatility
Liquidation heatmaps highlight concentrated pressure zones around $0.215 (shorts) and $0.225 (longs). A dip below $0.215 could trigger cascading long liquidations, accelerating downside. Conversely, a break above $0.225 may spark a short squeeze, adding fuel to an upward rally. With price hovering between these thresholds, the next decisive move could define DOGE’s short-term trajectory.
Outlook for DOGE
The alignment of the TD Sequential buy signal, a cup-and-handle structure, and strong long positioning supports a constructive recovery scenario. While near-term volatility is likely in the $0.215–$0.225 range, a decisive breakout above $0.244 and $0.277 would open the path toward $0.42. Overall, conditions currently favor buyers, with technicals and sentiment pointing to renewed upside potential.
