Dogecoin (DOGE) surged over 6% between July 9 and 10, breaking out of a bull flag formation before hitting key resistance at $0.186, where selling pressure reversed much of the move. Despite the pullback, chart patterns suggest the meme coin may not be done rallying just yet.
Macro Tailwinds Support Risk-On Rebound
DOGE’s latest breakout coincided with a broader crypto market rebound, fueled by optimism over macroeconomic shifts. The U.S. announced a three-week extension to its “Liberation Day” tariff deadline, easing geopolitical tension and spurring appetite for risk assets.
Simultaneously, bets on a Federal Reserve rate cut are growing. Analysts now anticipate a potential 25–100 basis point reduction in Q3, contingent on next week’s inflation data. This dovish pivot has pushed capital into high-beta plays like Dogecoin.
Price Action and Technical Breakdown
DOGE climbed from $0.170 to $0.186 during the trading session, with its biggest move occurring between 19:00 and 20:00 UTC on July 9, when price spiked $0.007 on 1.52 billion tokens traded, nearly twice the 24-hour average.
However, the $0.186 level quickly emerged as strong resistance, with repeated rejection during the 21:00–23:00 UTC window. Support around $0.180–$0.181 held into the session close, but broke late in the trading cycle, signaling profit-taking and institutional distribution.
In the final hour, DOGE dropped 0.55% from $0.181 to $0.180 on elevated volume, breaching intraday support levels at $0.1808, $0.1806, and $0.1803.
Technical Indicators: Mixed But Biased Bullish
While lower-timeframe RSI and On-Balance Volume (OBV) suggest short-term exhaustion, longer-term charts continue to show constructive formations. A “cup and handle” pattern appears to be forming, hinting at a potential secondary breakout if DOGE can regain momentum above $0.186.
Break Above $0.186 Could Trigger Fresh Rally
Traders are now eyeing a clean break and close above the $0.186 resistance to confirm a continuation pattern, with upside targets toward $0.192 and $0.198 in play. Failure to hold above $0.180, however, could send DOGE back to retest $0.174 support.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.