Dogecoin: Is now the best time to go long on DOGE?

Is it time to buy Dogecoin?

The crypto market is going through a turbulent patch, and the king of memecoins has not been spared. After holding the support line since late April, the price of DOGE gave way under selling pressure. Currently, the asset is trading in a mid range between $0.102 and $0.103, attempting a bounce after plunging to $0.0997.

This sudden drop of nearly 5% caught many bullish investors off guard. Indeed, the breakdown of the key $0.1 support triggered a devastating domino effect on leveraged positions, liquidating the most exposed traders.

The data reveals the extent of the damage: over $16.4 million in long positions were liquidated in the blink of an eye. This massive flush amplified the bearish momentum. Paradoxically, trading volume surged by 47%, highlighting a fierce battle between buyers and sellers.

In fact, this structure offers an ideal setup to go long following this rapid liquidation and a bounce off a crucial demand zone.

Trading setup: Going long on the Order Block bounce

The 3 day DOGE chart reveals a particularly interesting technical setup for traders. Following the leverage flush, the price tested and bounced off a major 3 day Order Block located in the orange zone between $0.095 and $0.103 — an institutional demand structure that absorbed three consecutive days of selling pressure without breaking.

This Order Block bounce is highly significant. It represents an imbalance zone left by a previous impulsive move, where smart money has historically absorbed supply. Three days of consolidation above it confirms that buyers are actively defending this level — a signal of relative strength within a broader bearish market context.

The long setup is as follows:

The Stop Loss at $0.1007 is positioned below the mid range — a clear invalidation of the structure negates the bullish thesis and limits the drawdown to approximately 2.3% on the committed capital. The target at $0.138 corresponds to the 1.618 Fibonacci extension visible on the chart.

The volume profile (VPFR) confirms weak resistance between $0.103 and $0.115 — few trades have taken place, leaving the price free to move rapidly once the $0.115 zone is cleared.

Recommended position management: take 30 to 50% of profits at Target 1 ($0.115), move the stop to breakeven, and let the second half run towards $0.138. This approach secures the trade at the first resistance while maintaining an asymmetrical upside on the remainder of the position.

How high can the DOGE price go?

The current situation places Dogecoin at a crossroads. In a bullish scenario, the leverage flush could cleanse the market. If DOGE manages to stabilize around its current price and flip the former resistance into support, a new rally towards $0.13 to $0.14 remains entirely plausible for the coming weeks.

Conversely, the bearish scenario remains a threat. If panic persists and selling volumes continue to crush the order books, the memecoin risks sinking further towards the $0.08 zone. The upcoming daily closes will be decisive in confirming the direction of the asset.

As volatility is in full swing and liquidations pile up, a burning question is on the lips of investors: is this the ideal time to accumulate the dip, or is Dogecoin at risk of collapsing to new yearly lows?

Sources:

• TradingView
• MMT
• AMBCrypto

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