Dogecoin [DOGE], one of the most recognized cryptocurrencies in the market, is once again attracting attention from swing traders and long-term investors. After a period of consolidation and a notable pullback from its May rally, DOGE is holding ground above a key support zone, signaling a potential move higher in the coming days. With price action, volume indicators, and liquidity data aligning, there’s growing confidence among bullish traders that Dogecoin could soon see a 20% jump.

Key Support at $0.142 Is Drawing Buyers

Dogecoin has recently retested the $0.142 level, a support zone that originally acted as a range low back in April. Despite price volatility in the broader crypto market, DOGE has managed to stay above this key level, providing traders with a level of confidence that a local bottom might be forming.

Technical analysis on the weekly chart shows a bullish swing structure remains intact. The coin hasn’t dropped below the $0.089 low formed late last year, and while the internal sub-structure of price action still leans bearish, DOGE’s resilience at higher support levels suggests underlying buying pressure.

To shift the broader structure fully in favor of bulls, DOGE would need to surpass the $0.259 local high set during the May rally. That said, a move back to the $0.20 region could be an important step in establishing the foundation for such a breakout.

Indicators Signal Accumulation Phase

Volume indicators such as the On-Balance Volume (OBV) and Chaikin Money Flow (CMF) provide additional insight. While OBV is currently retesting a level it last touched in March, suggesting there hasn’t been a dramatic increase in spot buying, the CMF paints a more bullish picture.

The CMF recently posted a strong positive reading of +0.13, indicating significant capital inflows and investor accumulation. This divergence between OBV and CMF can often be an early indicator that institutional or larger retail players are entering positions while broader sentiment remains subdued.

The Relative Strength Index (RSI), meanwhile, still reflects bearish momentum on the weekly timeframe, reinforcing the view that Dogecoin may be in a consolidation phase rather than a full-fledged uptrend. However, these periods of low momentum often precede strong directional moves, especially when paired with price holding above a long-standing support level.

Range Recalculation and Fibonacci Levels Offer Clarity

Dogecoin’s recent price movements suggest that its previous range formation, from March to April, might need to be reinterpreted. By extending the original range boundaries, analysts now view the former range high as a revised mid-point, which has acted as both resistance and support in recent months.

This adjustment aligns closely with the current structure seen on the daily chart. The May rally that touched $0.259 is now viewed as a temporary breakout above this range. With the price retracing back to $0.142, it effectively retested a significant demand zone that historically prompted bullish reactions.

Fibonacci retracement levels also support this analysis. The price is hovering between the 61.8% and 78.6% retracement levels from the most recent swing low to high. This is often considered a “golden pocket” for potential reversals, where buyers tend to re-enter the market with increased confidence.

Liquidation Heatmaps Suggest Magnetic Zones Ahead

Data from Coinglass’s liquidation heatmap reveals that a liquidity pocket between $0.145 and $0.162 has recently been cleared, meaning leveraged positions in that range were liquidated. This sweep often signals a short-term bottom, as it clears out weak hands and paves the way for stronger directional moves.

Above current prices, smaller clusters of liquidity are forming around $0.173 and $0.182—levels that could attract price movement as market makers and traders aim to target stops and liquidations in these zones.

A more prominent liquidity zone lies at $0.21, aligning closely with the mid-range resistance level identified in the adjusted range model. If Dogecoin can gain momentum and push through nearby resistance levels, the $0.20–$0.21 range becomes a logical target.

Strategy for Swing Traders

For traders seeking potential entries, the $0.154 level stands out as a reasonable risk level. A stop-loss just below this mark offers protection in case the current bounce fails. On the upside, profit targets could be set in the $0.198–$0.20 zone, where multiple technical factors converge.

This offers a favorable risk-to-reward setup, especially for those who believe that DOGE is entering a period of range expansion rather than prolonged decline.

Consolidation Today, Breakout Tomorrow?

The current state of Dogecoin’s chart suggests that it may be laying the groundwork for a larger move. Low trading volume over the past two months reflects a quiet accumulation phase rather than a lack of interest. This kind of consolidation often comes before renewed volatility, especially when paired with indicators showing capital inflows.

If DOGE can reclaim its mid-range resistance and push toward the $0.20 psychological level, it would not only confirm the current bullish thesis but also strengthen the case for a retest of May’s high around $0.259.

For now, traders and investors alike are watching closely. A 20% rally from the current support level remains on the table, but as always, caution is advised and stop-loss management is key.