Dogecoin ($DOGE) is showing strong signs of a potential comeback after weeks of decline. A "buy" signal from the TD Sequential indicator on its 4-hour chart has caught the attention of traders, suggesting a possible short-term rebound from its current trading price of $0.218.
Technical and Sentiment Indicators Point Up
On the daily chart, a cup-and-handle pattern is forming, a classic bullish signal that could propel DOGE toward its next breakout. For this to happen, the coin needs to successfully break through key resistance levels at $0.244 and $0.277. If it can, the pattern's projected target is $0.42.
Market sentiment on Binance is also overwhelmingly bullish, with 75% of traders holding long positions. This strong lean toward a rebound aligns with the positive technical patterns and provides liquidity that could help push the price higher. However, this heavy long exposure also means there's a risk of a sharp price drop if a retracement occurs, leading to a cascade of liquidations.
Key Volatility Zones to Watch
Volatility is expected as the price hovers between $0.215 and $0.225. Significant liquidation clusters in these areas could trigger sharp price movements. A dip below $0.215 could lead to more selling, while a move above $0.225 could trigger a short squeeze, accelerating a move up.
In summary, the combination of a technical buy signal, a bullish chart pattern, and strong long-side sentiment suggests that Dogecoin is well-positioned for a recovery. The outlook favors buyers, with a strong possibility of a sustained rally toward $0.42 if it can overcome immediate resistance levels.
August 2025, Cryptoniteuae