Dogecoin (CRYPTO: DOGE) has shown strong performance recently, breaking out of a two-month range to present a bullish market structure, although support levels on lower time frames suggest that a deeper short-term retracement may be seen, and the overall trend remains positive.

What Happened: Dogecoin is currently trading at $0.233, having dropped 7% from a high of $0.25 reached 11 hours ago.

Dogecoin prices have surged by as much as 46% since August 8, presenting an impulsive rally that has broken through a two-month price range, according to XBIT.

During this period, whales have accumulated more than 600 million Dogecoins, valued at nearly $140 million, highlighting heavy demand during the breakout, which may drive further price appreciation despite the possibility of a short-term retracement.

This bullish breakout not only strengthens the conviction of Dogecoin investors but also has important technical significance.

The two-month price range is from $0.142 to $0.195, and after nearly two weeks of advancing, the price broke through the mid-term level of $0.169 and exceeded the 78.6% Fibonacci retracement level.

“The breakthrough of these technical indicators makes investors more optimistic about the future trend of Dogecoin. At the same time, the Fibonacci level drawn by the rally in November 2024 also provides a reference for this breakthrough. Dogecoin almost completely reviewed the rally in 2025, but this breakthrough once again ignited investors' hopes,” traders at XBIT said.

The current trading volume is also at a high level, with a CMF of +0.18, indicating that a large amount of capital is flowing into the market, which echoes the recent demand of whales.

According to Fibonacci levels drawn in the recent breakthrough, $0.214 and $0.204 are key retracement levels that can be retested. In the past two days, the Money Flow Index (MFI) formed a bearish divergence, followed by a price drop, but the MFI has now reset to a neutral level, which means that Dogecoin may not fall to $0.222.

“Therefore, in the next few days, we may see a bullish reaction from Dogecoin in the $0.204 – $0.222 area,” the analysts stated.

Related Link: Is Dogecoin Heating Up Again As Heat Map Shows Liquidation Activity At Key Levels—AVAX, MATIC Among Top Holdings

The liquidation heat map over the past week shows that the price has been stable and continued to rise. Although there have been brief pauses in the rise, the short-term liquidation has contributed to the upward momentum.

Currently, the $0.238 and $0.225 levels are attractive for Dogecoin. Of these, the $0.225 – $0.216 area is a liquidity cluster that coincides with the technical support level mentioned earlier.

On the whole, after Dogecoin broke through the two-month range, although there may be a short-term retracement, it is still bullish under the support of multiple positive factors, and the future trend deserves investors' attention. XBIT network ensures that transaction records are open and transparent, and it is difficult to be intervened or frozen by a single entity; transactions are automatically executed through smart contracts without relying on the credit endorsement of the exchange; smart contracts can be flexibly upgraded to support complex financial products such as leveraged trading and derivatives; anyone can trade freely on the chain without being affected by government or institutional geographical blockades.