DOGE Meets Ceiling Following Bull Flag Breakout, Yet a Classic ‘Cup and Handle’ Pattern Suggests Upside

Dogecoin Poised for Breakout as Macro Tailwinds Bolster Crypto Rally

Dogecoin is showing signs of short-term fatigue on lower timeframes, with RSI and OBV indicators hinting at possible cooling ahead. Yet the bigger picture remains firmly bullish, as macroeconomic shifts continue to provide a tailwind for crypto markets.

During the July 9–10 trading window, Dogecoin (DOGE) spiked over 6%, breaking through resistance in a rapid rally before reversing sharply late in the session.

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Macro Backdrop: Trade Talks and Rate Cut Hopes Support Risk Appetite

• Market sentiment improved after the U.S. government extended its “Liberation Day” tariff deadline by three weeks, easing immediate trade tensions and giving negotiators more time.
• Meanwhile, speculation over a potential Federal Reserve rate cut in July gained traction, with forecasts ranging from 25 to 100 basis points in cuts during Q3 if inflation comes in lower than expected next week.
• These macro developments helped fuel a rebound across crypto markets, lifting DOGE and other high-beta assets off crucial support zones.

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DOGE Price Action Overview

• DOGE surged from $0.170 to $0.186 between July 9 at 03:00 and July 10 at 02:00, posting a 6% gain.
• A strong breakout occurred between 19:00–20:00 on July 9, where DOGE leapt $0.007 and trading volume spiked to 1.52 billion, nearly double its 24-hour average.
• Resistance took shape at $0.186, where DOGE was repeatedly pushed back on high volume.
• Support held in the $0.180–$0.181 range through most of the session.
• In the final hour (02:28–03:27), DOGE slipped 0.55%, retreating from $0.181 to $0.180, forming a reversal pattern as downside momentum increased.

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Technical Analysis Snapshot

• Range: DOGE traded in a $0.016 band (9.23%) between the low of $0.170 and the high of $0.186.
• Resistance: Firm at $0.186, where multiple high-volume rejections occurred between 21:00–23:00.
• Support: Held at $0.180–$0.181 but weakened in the final hour under selling pressure.
• Breakdown Details: Between 02:28 and 03:27, support levels at $0.1808, $0.1806, and $0.1803 successively broke under heavy volume, suggesting institutional distribution.
• Volume Trends: Peaked at 1.52 billion during the rally and registered 4.9 million during the reversal, reflecting both strong bullish entries and subsequent profit-taking or bearish exits.

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What Traders Are Watching Next

• Will DOGE reclaim $0.186 and flip it into support? Sustained volume above this level would be key.
• If the decline continues, look for possible support around $0.176 and $0.172, drawn from previous consolidation areas.
• Despite short-term exhaustion signals, broader macro trends remain supportive, keeping the outlook cautiously optimistic.
• The price action from July 9–10 might represent the “handle” in a larger weekly cup-and-handle formation. Confirmation would require a decisive move above $0.195 with solid volume.

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Bottom Line

Dogecoin seems to be coiling for a potential breakout. Several bullish technical formations—including a multi-year cup-and-handle, a higher low base, and a triple bottom—align with a rise in institutional whale activity.

A strong push above the $0.175–$0.20 resistance zone, especially on surging volume, could open the door for DOGE to rally toward $0.25 and possibly even higher.

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