Dogecoin Price Eyes $0.30: Fresh Upside to Push Bulls?

Key Insights:

• Dogecoin price formed an inverse H&S pattern, confirming a breakout and retest on the 15-minute chart.
• DOGE held $0.225 support at press time and maintained a bullish structure despite the recent 5.8% dip.
• Derivative data showed mixed sentiment, with longs losing $20M in a recent sell-off.

Dogecoin (DOGE) price faced resistance below $0.25 after a sharp pullback. That reflected broader market consolidation. Despite a recent 5.8% correction, technical signals suggested that bulls may still target $0.30 if momentum recovers.

Inverse Head and Shoulders Pattern Signaled Bullishness

Dogecoin’s short-term price action formed an inverse head and shoulders pattern, a classic bullish reversal structure. This pattern, highlighted by Trader Tardigrade, showed a breakout above the neckline, followed by a successful retest. It confirmed the uptrend continuation.

This setup indicated that Dogecoin price remained in a bullish phase despite the recent dip.

The inverse head and shoulders pattern usually indicates a reliable reversal from bearish to bullish market conditions.

This pattern appears when the coin price first records a series of decreasing lows (left shoulder, head), followed by a higher low (right shoulder), and then ultimately breaks through a resistance line (neckline).

Since DOGE has now confirmed this formation, there is potential for further gains if conditions in the market improve.

Weekly Close Above Key Resistance Indicated Further Gains

Adding to the bullish outlook, Rekt Capital highlighted that Dogecoin price recently closed a critical weekly candle above the pre-halving highs. This green resistance level, once a major barrier, now appears to be acting as support.

According to the analysis, DOGE reclaimed that key level and was attempting to flip it into a new support zone.

This price action suggested that Dogecoin was building a solid base for a larger move toward the $0.27 to $0.30 range.

The weekly closure above the mentioned resistance provided a substantial increase in bullish expectations. It supported a good outlook for the token. If DOGE price remains at this level, the subsequent goal will be $0.27 resistance.

Dogecoin Price Holds Key Support Levels Despite Volatility

DOGE price dropped 5.7% on Sunday, May 11, following a three-day run of double-digit increases. This pullback was consistent with general market consolidation as investors sold and paid attention to macroeconomic developments.

Even so, the lower time frames revealed an inverse head and shoulders formation. That could signal further gains if DOGE stays above an important support level.

Dogecoin price traded at the $0.2244 level at press time. It witnessed a decline of 6.07% in the past 24 hours.

DOGE price on Monday corresponded to Trader Tardigrade’s identified neckline retest, which supported the bullish pattern. A major breakout would be confirmed only if the top meme coin price clears the $0.25 barrier.

Dogecoin Derivative Data Reflects Mixed Sentiment

The pullback in DOGE price could be strongly connected to notable changes in the sentiment of derivatives traders. DOGE open interest fell 7.29% to $2.80 billion. That coincided with a 19.55% decline in daily trading volume to $7.74 billion. Increased volatility was prompting traders to decrease their level of leverage.

Liquidation data on Monday showed $20.15 million in total DOGE long positions were wiped out over the past 24 hours, 75% of which were longs. This implied that highly leveraged bull positions were unredeemed with the price fall under $0.25.

Dogecoin price continued to show a bullish structure so long as $0.225 holds as a support level. The medium-term upward momentum was supported by a 5-day RSI crossover, predicting Dogecoin price could reach $0.30 if Bitcoin maintains levels above $104,000.

Meme coins, including DOGE, could begin to rise once more if institutional interest is maintained. If Bitcoin fails to stay above $100,000, downside risks are likely to continue. Should Dogecoin price decline below $0.225, more liquidations may occur, and this could weaken the existing bullish case.

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