Dogecoin (DOGE) price trades at $0.24 today

Dogecoin (DOGE) price trades at $0.24 today, May 12, up 5% in 24 hours. The meme coin faces resistance in its attempt to break out past $0.25, despite soaring by 43% in seven days. Technical signals emerge to suggest the possibility of a pullback before the next bullish leg.

If the meme coin can flip this resistance, it may skyrocket to 2025 highs above $0.40. However, such a rally is unlikely to happen yet, as explained below.

Dogecoin Price Warns of Double Top Reversal

Dogecoin price is up by 8% in the last 20 hours, forming three consecutive bullish candles known as the triple white soldier pattern. The DOGE price rally accounts for 50% starting from the May 6 bottom at $0.1653.

As Dogecoin forms a peak at $0.2505, the meme coin price trend takes a sideways shift with a pullback $0.2245 on May 11. The recent bounce back in DOGE now challenges the short-term resistance while warning the possibility of a second peak. In such a case, a double top pattern will be formed in the DOGE price chart with a neckline at the $0.2245 support level.

If Dogecoin pullback breaks under $0.2245, a conclusive closing price below the support could signal a strong, steep correction. The price target of this bearish pattern is calculated by adding the distance between neckline and top to the breakout level. This warns of a 10% drop to the next psychological support level of $0.20.

As Dogecoin struggles to surpass the previous peak at $0.2505, the Relative Strength Index (RSI) drops from the overbought zone, suggesting a declining trend momentum. This highlights a bearish divergence between RSI and Dogecoin, considered a highly bearish signal when paired with a double top. Furthermore, the MACD and signal lines merge after a bull run, suggesting a fall in trend momentum. Hence, the technical indicators give a bearish Dogecoin price prediction, warning of a short-term pullback.

Conversely, a 4-hour candle closing above the $0.2505 level will nullify the bearish pattern. However, the declining momentum is likely to trigger a pullback ahead.

Bearish Pattern Warns $67 Million in Liquidations

Amid the possibility of a steep correction, Coinglass data shows liquidation risks rising to $67 million if DOGE price hits $0.228. This warns of a major wipe of bullish Dogecoin traders in the market.

Additionally, the short liquidations are at $3.97 million and the long liquidations rise to $7.64 million, almost double in the last 12 hours. This warns of a rising bearish dominance and a potential wipeout of additional long DOGE traders.

With a potentially bearish pattern in the making, Dogecoin could witness a minor pullback as suggested by technical indicators. However, this may not result in a $100 million in long liquidation due to early closure of long positions from traders.

Frequently Asked Questions (FAQs)

1. Why is Dogecoin facing resistance near $0.25?

Dogecoin price has been unable to break out past the 2025 highs of over $0.40, despite a recent 43% rally in seven days. This resistance is likely due to the lack of follow-through in price action after tagging the round-number resistance at $0.25.

2. What happens if DOGE breaks below $0.2245?

If the price breaks below the neckline of the double top pattern, which is located at the $0.2245 support level, it could signal a strong, steep correction. The price target for this pattern is calculated by adding the distance between the neckline and the top to the breakout level, which could reach the next psychological support level of $020.

3. Can Dogecoin invalidate the bearish outlook?