Dogecoin Builds Strong Base at $0.17: Are Bulls Preparing for a Rally Toward $0.20?

Dogecoin has found solid footing at the $0.17 support level, suggesting that the meme coin may be preparing for a bullish reversal. With top crypto assets holding critical support zones, meme coins have struggled over the past month. The entire meme coin sector has declined by 20% over the last 30 days, reducing its collective market cap to $54.63 billion.

Despite the sector-wide downturn, Dogecoin has stood out by forming a reliable base at $0.17. This level has served as a launchpad in April, May, and again this June. Recent price action, combined with encouraging technical indicators, suggests that another upward move could be brewing.

Daily Chart Shows Repeated Bounces from $0.17

Dogecoin recently rebounded from a weekly low of $0.1639 and now trades near $0.1711. On the daily chart, the MACD lines are moving closer to a bullish crossover, while the RSI has reversed from the oversold territory, indicating rising buying pressure.

If Dogecoin can close above the 23.60% Fibonacci retracement level, it could break through psychological resistance at $0.20. However, failure to hold $0.17 may lead to a drop toward the $0.15 range.

Analyst Predicts Bullish SMA Crossover

Crypto analyst Trader Tardigrade has identified another reason for optimism. According to the analyst, Dogecoin is approaching a bullish crossover between its 10-week and 20-week simple moving averages (SMAs). Historically, this crossover has signalled gains of 200% to 300% for Dogecoin.

With the pattern set to repeat, bullish traders are watching closely for a breakout that could validate the historical trend. As Dogecoin holds the $0.17 base, the upcoming SMA crossover could trigger renewed buying momentum.

On-Chain and Derivatives Data Strengthen the Bullish Case

In the derivatives market, Dogecoin’s outlook is also improving. CoinGlass data shows that open interest has climbed by 1.83% in the past 24 hours, now totalling $1.82 billion. This rise in open interest typically reflects growing investor confidence.

The funding rate has also increased to 0.0055%, suggesting a bias toward long positions. Interestingly, long liquidations totalled $910,000, nearly double the $407,000 in short liquidations. This shift hints that more traders are betting on upward price movement.

Although the long/short ratio remains neutral for now, the clear uptick in long-side activity combined with technical support levels paints a bullish picture for Dogecoin in the near term.

Conclusion: Reversal or Another Pause?

As Dogecoin stabilises at the $0.17 level for the third time in recent months, a bullish reversal appears increasingly likely. Momentum indicators are recovering, on-chain metrics are strengthening, and analysts point to a historical SMA crossover that could fuel another major rally.

While risks remain, especially if $0.17 fails to hold, the signs of accumulation and bullish sentiment suggest that Dogecoin could soon retest $0.20. Traders will be watching closely in the coming days for confirmation of a breakout or continuation of the consolidation phase.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.