Dogecoin Shorts In Trouble? This Retest Could Ignite Multi-Level Rally

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Dogecoin’s bullish momentum is putting short positions under pressure as the price eyes a crucial $0.27 retest. A successful breakout above this level could spark a powerful multi-stage rally, opening the door to higher targets and renewed market excitement. DOGE/USDT Clears $0.2533 Resistance With Conviction

GemXBT, in a recent updateon X, highlighted that DOGE/USDT is showing a bullish trend after breaking above the key resistance level at $0.2533 with strong upward momentum. This breakout signals renewed buying pressure, as the price pushes beyond a level that had capped recent advances. The move suggests bulls are gaining control and could be preparing for further upsideif momentum holds. Related Reading Dogecoin Eyes Breakout Above Key Trendline-Will Momentum Hold Or Fade? 2 weeks ago

According to the update, the 5-day moving average (5MA) has crossed above both the 10-day and 20-day moving averages. Such crossovers often reinforce the continuation of an uptrend, especially when supported by other confirming indicators. DOGE bulls maintaining control of the market | Source: GemXBT on X

Volume has also been increasing alongside the price rise. Higher trading activity at elevated price levels shows that demand is growing, adding credibility to the upward move. This combination of technical strength and volume supportpositions Dogecoin for potentially sustained gains.

However, GemXBT also noted that the Relative Strength Index(RSI) is approaching overbought levels, while the MACD is in positive divergence. These conditions suggest there is still room for more upside, but they also warrant caution for possible short-term pullbacks.  Cup & Handle Emerges: A Textbook Bullish Signal For Dogecoin

Examining the daily chart, RISK highlightedthat Dogecoin is forming a classic cup-and-handle pattern, one of the most reliable bullish formations in technical analysis. Following a deep, rounded recoveryfrom the June lows, the price is once again testing the $0.27 resistance zone, a level that has repeatedly capped previous rallies.  Related Reading Dogecoin Just Flashed A Rare Weekly Bullish Signal — This Analyst Is Buying 2 weeks ago

The handle portion of the pattern is taking shape with controlled pullbacksand reduced trading volume. This behavior typically signals that sellers are gradually running out of steam while buyers quietly build positions. Such consolidation often precedes a breakout, as the market transitions from profit-taking to renewed buying pressure.

If DOGE manages to break and close above the $0.27 resistance zone, the technical structure suggests that momentum could accelerate sharply. In this case, bullish targets would likely extend toward $0.31, then $0.39, and potentially $0.50 or higher as confidence grows among traders. 

For now, the broader outlook remains bullish as long as the series of higher lows on the chart stays intact. With the breakout scenario still firmly in play, Dogecoin is positioned for a strong upward move should buyers push it past the $0.27 key resistancebarrier. DOGE trading at $0.23 on the 1D chart | Source: DOGEUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com