Dogecoin (DOGE) price rose 18% this week, reclaiming the $0.20 mark after breaking above a key technical level on Thursday.

The rally was sparked by a new trade agreement signed between the U.S. and the U.K., which triggered broader bullish momentum in the crypto market.

As DOGE’s upward move unfolded, it cleared the 50-day and 100-day exponential moving averages (EMAs), historically strong resistance zones for the meme coin.

At the time of writing on Friday, DOGE was trading at approximately $0.206, having established a support base above $0.20.

Renewed interest in DOGE was evident with a surge in trading volume and derivatives activity, suggesting increased participation from both institutional and retail traders.

13 million in liquidations

Dogecoin’s rally sparked a wave of liquidations in the futures market, with approximately $13 million worth of positions wiped out in the 24 hours to 07:00 UTC.

According to Coinglass data, short liquidations made up the majority at $11.3 million, compared to just $1.6 million in longs.

This imbalance indicates a textbook short squeeze, where a sharp price increase forces traders with bearish positions to exit rapidly, pushing prices even higher in the process.

Open Interest (OI) in DOGE futures also jumped by 18% to $2.17 billion, a sign of growing trader appetite.

The surge in OI, particularly from long positions, suggests market participants are positioning for further upside.

Binance’s long-to-short ratio of 2.4602 also reinforces this trend, showing more traders betting on DOGE to move higher.

Volume activity added to the bullish confirmation. DOGE’s 24-hour trading volume spiked 74.49% to reach $4.5 billion.

Elevated volume during an uptrend is generally seen as a confirmation of momentum strength.

Inverse head and shoulders targets $0.24 breakout

Dogecoin has now broken out of a classic inverse head and shoulders formation, often seen as a bullish reversal signal.

The structure, which can be seen on the daily chart, projects a potential 33% move from the breakout level, which puts the next price target at around $0.24.

This projection is based on the pattern’s height, measured from the head to the neckline and applied above the breakout point.

Currently, DOGE is attempting to stabilise above the 100-day EMA at $0.20.

If this support holds, then the bullish momentum is likely to continue into the next sessions.

The MACD indicator also shows positive divergence, with green histogram bars above the centreline indicating increasing upward pressure.

However, traders should be aware that the RSI has reached 70.31, entering the overbought zone.

While this does not immediately signal an impending reversal, it does often precede short-term corrections.

Should DOGE pull back from current levels, the 50-day EMA at $0.18 may act as a key support and potential re-entry zone.