Dogecoin price regained and moved past $0.17 after a bullish run in the night as global sentiment boosts the market. This recovery came as China showed signs of willingness to return to the negotiation table with the United States on trade, favoring global risky assets such as cryptocurrencies.
Dogecoin Goes Past $0.17 on Trade Optimism
After a 11.96% recovery, Dogecoin price bounced back to the $0.19 range. This comes after China stated that it will begin negotiating new trade terms with the US during the International Economic Forum in Switzerland this weekend.
The meme coin benefited from market-wide positive momentum as investors believe the U.S.-China trade dispute will ease. Digital currencies like Dogecoin experienced growth potential thanks to market positivity, which has kept the meme coin from reaching important resistance levels during the last few months.
In addition, Dogecoin 4-hour price analysis indicates the creation of a bullish falling wedge pattern across the previous fourteen days. The meme coin is testing the resistance line from within a descending pattern characterized by moving highs and lows.
A successful breakout from this pattern will signify the start of Dogecoin’s journey towards reaching $0.20, which stands as an important price level for traders.
Dogecoin Price Chart | Source: TradingView
Moreover, Dogecoin price recovery is also supported by technical indicators, including the moving average convergence divergence (MACD) and the relative strength index (RSI). Both have turned bullish in the short term, strengthening the view that the price may rise above the current resistance levels.
Rising Open Interest Reflects Growing Bullish Sentiment
More so, Dogecoin futures and options trading volume has increased by 115.21%, standing at $1.49 billion. Most traders’ commitment to the market, as shown by open interest numbers, indicates stronger confidence in price breakout potential. Derivatives market activities indicate upcoming spot price changes that demonstrate traders expect additional price growth..
Furthermore, rising open interest shows that Dogecoin continues to remain actively traded, as trading volumes have increased simultaneously. A more extended market rally appears possible due to growing trader activity, which could continue with favorable market conditions.
Potential for Short Liquidations Could Boost the Price
With Dogecoin price continuing to fight to sustain the recent gains, short liquidation risks have risen. Data from exchanges has revealed that above $0.1755, around $10.96 million worth of short positions could be liquidated, and this would likely fuel the price rally.
DOGE Liquidation Map
Besides, this level of liquidation shows the extent of leveraged short positions that can be triggered to cover if the price moves higher and continues the rally.
Inverse Head and Shoulders Pattern Suggests Further Upside
Crypto analyst, Trader Tardigrade, highlighted a bullish outlook for Dogecoin based on the formation of an inverse head and shoulders pattern on the hourly chart. This technical reversal pattern usually indicates a shift of trend from bearish to bullish.
The meme coin chart displays a left shoulder, a head, and a right shoulder, followed by a breakout above the neckline at approximately $0.17400, signaling increased buying pressure.
Dogecoin Price Chart | Source: X
Additionally, the price action after the breakout further supports the bullish prediction, with Dogecoin price remaining higher and trending upward.
The inverse head and shoulders chart formation, together with price action above the neckline, suggested that the price will continue to rise.
Technical traders often view such breakouts as confirmation signals to enter long positions, expecting the trend to extend toward higher resistance zones.
