Dogecoin (CRYPTO: DOGE) price has been struggling to keep pace with the broader cryptocurrency market, especially as Bitcoin (BTC) crashed below the $108,000 mark. However, amidst the meme coin downturn, Dogecoin is showing signs of a double bottom reversal pattern.

As Dogecoin price action continues to heat up, here’s a look at what’s next for the meme coin.

What Happened: Dogecoin is currently trading at $0.21, maintaining a sideways trend between $0.2177 and the $0.25 supply zone on the 4-hour chart. At present, Dogecoin is consolidating near the lower boundary, encountering short-term resistance at $0.2302.

This consolidation pattern hints at a potential double bottom reversal, which could challenge the upper resistance level. The $0.2302 resistance acts as the neckline of the double bottom formation.

Further supporting the possibility of upside movement, the MACD and signal lines are nearing a bullish crossover. Additionally, the MACD line is displaying bullish divergence within the double bottom pattern.

However, the SuperTrend indicator is still signaling a bearish trend. For a complete bullish confirmation, Dogecoin needs to break above the $0.2349 level and the SuperTrend indicator.

According to Fibonacci retracement levels, a short-term resistance is located near $0.2401, aligning with the 23.60% level.

Therefore, the price action suggests multiple short-term hurdles that must be cleared before we might see DOGE testing the $0.25 supply zone.

Optimistically, a successful breakout from the double bottom pattern could lead to a challenge of the $0.25 zone. If Dogecoin manages to break through the consolidation range, Fibonacci levels indicate a potential upside target of $0.2680.

On the downside, a key support level is placed just below the $0.2177 zone, at the previous low of $0.2037.

Derivatives Data Shows Mixed Sentiment:

As Dogecoin price action shows signs of a bullish reversal, the derivatives market is showing a surge in mixed sentiment.

According to Coinglass data, Dogecoin’s open interest has increased by 2.89%, reaching $2.71 billion. This rise in open interest indicates growing trader activity, likely anticipating a sharp price move.

The bullish intent is evident in the rising, over-weighted funding rate, currently at 0.0070%. However, liquidations over the past 24 hours show bearish dominance, with long liquidations totaling $4.51 million, compared to just $1.41 million in short liquidations.

Despite the increase in long liquidations, the Dogecoin long-to-short ratio chart shows an increase in bullish positions. Long positions now account for 48.59%, up from 47.78% over the past 36 hours. This has pushed the long-to-short ratio from 0.915 to 0.945, reflecting an effort to balance sentiment in the cryptocurrency market.