Despite Resistance After a Bull‑Flag Breakout, DOGE’s ‘Cup & Handle’ Formation Foreshadows Higher Moves

Dogecoin Rally Hits Resistance, But Bullish Signals Remain as Macro Winds Favor Crypto

Dogecoin’s recent rally has met resistance, with technical indicators suggesting short-term fatigue. Still, optimism remains strong in crypto markets, bolstered by encouraging macroeconomic developments.

Over the July 9–10 session, Dogecoin (DOGE) jumped more than 6%, breaking past key resistance levels before retracing sharply during the final hours of trading.

Macro Factors: Trade Extensions and Fed Cut Bets Boost Risk Appetite

• Markets were buoyed after the U.S. extended the “Liberation Day” tariff deadline by three weeks, easing near-term trade concerns and buying time for further negotiations.
• Expectations are mounting for a Federal Reserve rate cut in July, with major banks forecasting cuts ranging from 25 to 100 basis points if next week’s inflation data falls short.
• These factors have lifted sentiment across crypto markets, fueling rebounds in DOGE and other high-volatility assets.

DOGE Price Action

• DOGE surged from $0.170 to $0.186 between July 9 at 03:00 and July 10 at 02:00, gaining over 6%.
• A breakout unfolded between 19:00–20:00 on July 9, sending DOGE up $0.007 and driving volume to 1.52 billion, nearly twice its typical daily average.
• Stiff resistance emerged at $0.186, with repeated rejections as trading volume spiked.
• Support held in the $0.180–$0.181 zone heading into the close.
• During the final hour (02:28–03:27), DOGE fell 0.55%, dipping from $0.181 to $0.180, creating a reversal pattern and signaling growing downside momentum.

Technical Overview

• Trading Range: DOGE traded within a $0.016 band (9.23%), between a low of $0.170 and a high of $0.186.
• Resistance: Firm at $0.186, repeatedly tested and rejected between 21:00–23:00.
• Support: Held around $0.180–$0.181, though weakened during the final hour’s selloff.
• Breakdown Details: Between 02:28 and 03:27, successive support levels at $0.1808, $0.1806, and $0.1803 gave way under high sell volume, hinting at institutional selling pressure.
• Volume Trends: Peaked at 1.52 billion during the rally and measured 4.9 million during the reversal, indicating significant activity from both bulls and bears.

Key Levels and Outlook

• Traders are watching to see if DOGE can reclaim $0.186 and establish it as support, with sustained volume as a key indicator.
• Should selling persist, potential support zones lie at $0.176 and $0.172, drawn from prior periods of consolidation.
• Despite signals of short-term exhaustion, macro conditions remain supportive, keeping the broader outlook positive.
• The recent trading range may be forming the “handle” of a larger weekly cup-and-handle pattern. A breakout above $0.195 on strong volume would confirm this bullish formation.

The Takeaway

Dogecoin appears primed for another move higher. Technical setups—including a multi-year cup-and-handle, a higher-low structure, and a triple bottom—align with increasing signs of institutional whale accumulation.

A decisive push above the $0.175–$0.20 resistance zone, particularly on heavy volume, could pave the way for DOGE to rally toward $0.25 and potentially beyond.