Dogecoin (DOGE) is back in the spotlight after a powerful breakout above its multi-month resistance zone, sparking forecasts of a potential rally toward the $0.40 range. This move is after the completion of a textbook Adam and Eve bottom, a bullish chart pattern that has been developing under the radar since mid-May 2025. As of press time, DOGE trades at $0.264, up 79% on the month and 36% in the past week, as momentum builds. Yet, the multi-dollar question lingers: Will the rally hold?
A Closer Look at DOGE’s Bullish Setup
The breakout comes after the DOGE token spent weeks hovering around the $0.25 resistance level, which initially triggered an almost 20% drop to $0.21 in mid-May. That dip made up the “Adam” part of the pattern. It was followed by a more gradual decline into June, reaching a low of $0.14, down 43%, where the cryptocurrency found strong support, shaping the “Eve” bottom.
Since then, the meme coin has bounced sharply, pushing above both the pattern’s neckline and the crucial $0.25 resistance. The rally hit a high of around 0.28, where it faced selling pressure and moderately pulled back. However, the uptrend is still in place, and the price is above the previous resistance.
DOGE Price Chart (Source: TradingView)
Analysts predict two significant upside targets: one at $0.35, a 33% increase above the neckline breakout, and the other at $0.43, a 63% jump. A prolonged rally may result in the token touching $0.51, which corresponds to the 1.272 Fibonacci extension level, one that indicates further bullish extension.
Nevertheless, much depends on a firm candlestick close above $0.28. This would validate the bullish power and unlock the pathway to the targeted objectives. To dive deeper into what’s next for DOGE, check out our comprehensive Dogecoin prediction for expert insights on price targets. Failure to maintain above this level, though, may cause sentiment to turn bearish and the setup to be invalidated, with a downside to around the $0.14 support being possible.
DOGE Faces Heavy Liquidation Wall Near $0.29
Adding fuel to the rally narrative, Dogecoin’s on-chain liquidation heatmap highlights a critical liquidity pocket, where $12.81 million in leveraged positions are tightly stacked around $0.29147. This tight pack of liquidation leverage is a sign of a fuse waiting to blow, a possible short squeeze in the near future.
DOGE Liquidation Heatmap (Source: CoinGlass)
The range between 0.28 and 0.295 has turned into a battle zone with a heavy concentration of short positions. A decisive breakout and daily close above this line could unleash a wave of forced liquidations, rapidly amplifying upward price pressure and accelerating DOGE’s path toward the $0.35 target.
This liquidity wall is not only a resistance point but also a point of ignition. Should bulls reclaim it, momentum might pick up. Nevertheless, if price does not surmount this level, it can reinforce the selling pressure in the short run and stall the token’s uptrend.
