Dogecoin is currently trading near a significant long-term support zone around $0.10, which crypto analysts have identified as a potential historical market bottom. The memecoin sector has experienced substantial weakness in recent months, with market sentiment remaining deeply pessimistic across the broader cryptocurrency landscape. Industry experts predict the current bear market could extend through the fourth quarter of 2026 or beyond. Despite the grim outlook, technical indicators suggest a minor price recovery may be on the horizon before any further downward movement occurs. Technical Analysis Points to Near-Term Rebound The six-hour chart reveals a dominant bearish trend for the leading memecoin. Last week saw a brief rally to $0.10 before prices retreated to $0.0885. This pullback tested support levels established during the sharp decline on February 6. Market data suggests Dogecoin may move higher to capture liquidity above current price levels before resuming its bearish trajectory. However, analysts caution that a sustained recovery appears unlikely. The longer-term market structure and declining demand metrics reflected in the On-Balance Volume indicator support this assessment. Fibonacci retracement analysis of recent price swings identifies key resistance zones at $0.0989 and $0.1040. Traders anticipate the cryptocurrency will retest the upper resistance level within the coming days. The one-hour chart shows the internal market structure has not shifted to bullish during the recent price bounce. Local resistance persists at $0.094, though this barrier is expected to break soon. The hourly Relative Strength Index has climbed back above the neutral 50 mark, indicating growing momentum. Price action has defended the $0.0885 support level while establishing a higher low at $0.091 over the past 24 hours. At the time of writing, Dogecoin trades at around $0.09798, up 4.67% in the last 24 hours. Liquidation Clusters Signal Potential Price Targets The liquidation heatmap spanning the previous two months indicates a price rebound beyond $0.10 is probable. Significant clusters of short liquidations appear near the $0.11 level, where local price peaks formed in early February. These concentrated liquidation zones often act as magnets for price action. Market makers frequently push prices toward these areas to trigger cascading liquidations before reversing direction.
