Dogecoin has reclaimed the $0.2 price level after a fresh wave of bullish momentum swept across the market in the past 24 hours. The rally is a result of a return to strength for the meme-based cryptocurrency, which has been hovering below $0.2 since the beginning of June.
The price rebound comes amid increasing optimism surrounding DOGE’s current technical setup, with one analyst claiming the coin has exited its launchpad phase and is now poised for what he refers to as the explode phase.
From Bottom To Dogecoin Explosion
According to the technical analysis shared by Trader Tardigrade on the social media platform X, Dogecoin’s current price trajectory is closely following its previous macro cycles, particularly in how it behaves after setting a bottom on its weekly MACD and stochastic indicators. The analyst points to a recurring pattern where Dogecoin first bottoms out, forms a launchpad phase, and then an explosion.
This pattern is illustrated on the DOGE weekly candlestick chart below, where the blue and orange lines representing the stochastic oscillator retrace toward the midline after a confirmed crossover. As seen in October 2024, such a midline retracement following a bullish cross acted as a springboard for explosive upside momentum in November and December 2024.
The latest MACD behavior shows a repeat of this setup, with the oscillator forming a structure nearly identical to what preceded Dogecoin’s parabolic move to $0.48 in December. Based on this alignment, Trader Tardigrade declared that Dogecoin is no longer in the Launchpad Phase, but has now entered what he called the Explode Phase.
If the analysis holds true and Dogecoin is repeating this price action, the weeks ahead could bring about a significant price rally. The last time DOGE entered this phase, it saw a rally that took it from under $0.10 to over $0.48 within a matter of weeks. If this similar price action were to play out, Trader Tardigrade projected a price move above $0.7 in the coming months.
Clusters Around $0.189-$0.1995 To Push DOGE Higher
In a previous post, the same analyst referenced Dogecoin’s liquidation heatmap, highlighting two significant liquidity concentrations directly above the coin’s recent price levels. According to the heatmap data, there is $2.46 billion in potential liquidation at the $0.189 level, and another $2.14 billion at $0.1995. These liquidity zones are represented on the DOGE heatmap below as bright bands.
These two targets have now been cleared after Dogecoin broke above the $0.2 level. Because market makers tend to move prices toward high-liquidity zones to fuel volatility and volume, these clusters may have already served as launch points for Dogecoin’s ongoing rally. As noted by Trader Tardigrade, “market makers are aware of these levels, so you don’t have to worry about $Doge 🚀.”
At the time of writing, Dogecoin is trading at $0.2016, up by 5.6% in the past 24 hours. All the bulls need now are successful daily and weekly closes above $0.2.
Featured image from Getty Images, chart from Tradingview.com
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