- Dogecoin Price rejected $0.233 resistance and is holding above $0.218 support in a tightening triangle pattern.
- Over $9.88M in long liquidations occurred in 24 hours, showing downside pressure.
- Binance long/short ratio at 3.0783 signals traders are positioned for a bullish breakout.
Dogecoin price is in a symmetrical triangle pattern, and the traders are closely monitoring it on the 12-hour. Price action is under pressure as support and resistance lines come in to converge at the price and the market volatility is dropping. The arrangement typically causes an impending breakout, either upwards or downwards, in the form of a precise period of time.
Dogecoin Price Pattern Tightens as Breakout Nears
Dogecoin has been in a symmetrical triangle since the middle of July, and the price is now at $0.222. This upper trendline, which serves as resistance, extends to the July high of $0.287. Meanwhile, there has been a consistent upward move in the lower support trendline since the point where it hit the mark of $0.168.
Fibonacci retracement points give additional hints. The $0.618 level has recently been rejected at the price of $0.233, and it is considered a resistance area. It is currently trading above the $0.5 mark at $0.218, which is considered a short-term support. A drop below this could test the $0.204 and $0.188 levels, with the triangle base at $0.168 being key support.
Source: Ali Chart/X
The triangle’s apex is projected between late August and early September. Ali chart analyst noted that a breakout soon, with the pattern’s height suggesting a possible 40% move in either direction if momentum builds.
Dogecoin Price Derivatives Data Suggests Caution Despite Long Bias
Dogecoin derivatives market is mixed. The sum of 24-hours liquidated was $11.59 million, most of which was on the long side at around $9.88 million. This implies that there was a recent downward pressure that drove forced down-pours of leveraged long traders.
The opening interest rate declined 4.04% to the rate of 3.34 billion and trading volume reduced 29.38% to the rate of 5.40 billion. There was also the termination of option market activity. This implies that traders are either scared or are awaiting a rectified move.
Source: CoinGlass
However, both long/short ratios on Binance and OKX indicate that traders are still quite long. The ratio on Binance is at 3.0783 and on OKX 3.34, which implies that more traders anticipate a bullish breakout. The unwinding of heavy long longs has already caused large liquidations in the longs, and this becomes a possible headwind.
If DOGE breaks above the $0.233–$0.235 zone and holds above $0.256, the price could rally toward $0.270 and $0.287. But a move below $0.215 could open the way to $0.188 or even $0.168.
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