Dogecoin’s Rollercoaster: From Crash to New Buy Signal

The same tool that warned investors about Dogecoin’s sharp fall last month is now flashing a buy flag. After the price dropped from $0. 113 to $0. 078 in May, a chart analyst highlighted that the indicator had signaled a sell on May 7, right before the big slide. Today, after a quick rebound of about 3%, the indicator points in the opposite direction. The daily SAR, which had been bearish at $0. 078, turned bullish and stayed green for two days—an encouraging sign that has not appeared since April. On Tuesday, the same analyst noted a large whale bought more than 200 million DOGE, adding weight to the bullish case. Yet the picture is mixed. A full bearish EMA stack still sits above, creating resistance between $0. 09195 and $0. 11742. The channel base near $0. 093–$0. 095 is the first real barrier to break. If Dogecoin can reclaim the 20 EMA at $0. 09195 and hit volume targets of $0. 09725 and then $0. 10168, the SAR support at $0. 078 would be crucial; losing it could push prices toward $0. 075 and even $0. 070.

Market sentiment shows only a 1 % chance of reaching $0. 20 by June and 2 % for $0. 15 by July, with a slightly higher 10 % chance of falling below $0. 05—indicating that even skeptics doubt a full collapse. Derivatives data reveal fresh money flowing in. Open interest rose 3. 69 % to nearly $1 billion, and the long/short ratio of 0. 90 means most traders are still net short. In the last 24 hours, $482 k of shorts were liquidated against $1. 63 m in longs, showing early squeeze pressure. However, options volume plunged 86 %, suggesting low conviction for a big move soon. Regulatory news adds another layer. Dogecoin perpetual futures, along with Shiba Inu, are awaiting approval and could soon be available to U. S. traders on regulated platforms, potentially increasing demand at this critical point.

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