Dogecoin Forms Crucial Base at $0.17: Is a Bullish Rebound on the Horizon?

Dogecoin finds support at $0.17 as bearish momentum fades,bitcoin 50 day moving average while on-chain and derivatives data hint at a potential bullish reversal toward $0.20.

As top cryptocurrencies hold key support levels, meme coins have been on a downward trajectory. The segment’s market cap has dropped 20% over the past 30 days, now at $54.63 billion.

Meanwhile, Dogecoin appears to be forming a base at $0.17. With lower price rejections and rising optimism in the derivatives market, could Dogecoin be gearing up for a bullish comeback?

Dogecoin Price Analysis

On the daily chart, Dogecoin’s price action shows a base forming near the $0.17 support zone. Notably, Dogecoin has previously rebounded from this level in April, May, and June.

Following a recent bounce from a weekly low of $0.1639 to $0.1711, Dogecoin shows signs of an extended recovery.

The MACD and signal lines are nearing a bullish crossover, while the daily RSI has risen after reversing from the oversold zone. This suggests a short-term uptick in bullish sentiment, supporting the potential for a price rebound.

According to Fibonacci retracement levels, a daily close above the 23.60% mark could push Dogecoin toward the psychological resistance at $0.20. Conversely, a close below the current support zone could open the door to a decline toward $0.15.

Analyst Spots Bullish Crossover Ahead of Potential Dogecoin Reversal

Supporting the bullish outlook, crypto analyst Trader Tardigrade highlighted the potential for a major price turnaround. According to the analyst, a bullish crossover between the 10-week and 20-week simple moving averages (SMAs) is approaching.

Historically, this crossover has led to Dogecoin price surges ranging from 200% to 300%. As Dogecoin nears this technical signal once again, the odds of a significant uptrend increase.

Dogecoin Derivatives

In the derivatives market, optimism around Dogecoin has notably improved as the asset establishes a strong support base. Historical price action suggests a reversal may be imminent, and recent data shows increased buying activity over the past 24 hours.

Coinglass data reveals that open interest has risen 1.83%, reaching $1.82 billion. Additionally, the funding rate has spiked to 0.0055%.

Despite the long/short ratio remaining neutral, long liquidations have nearly doubled those of shorts: $910K vs. $407K. This indicates that traders are leaning toward a bullish outlook.