Foreign media reports that Dogecoin recently rebounded after finding support around $0.071, bringing its short-term price action back into the market spotlight. The article suggests that buying pressure has returned after weeks of selling pressure, and the price is attempting to test the downtrend line that has been suppressing the rebound since late June.
The area around $0.071 has temporarily become short-term support.
Looking at the price action, the $0.071 to $0.072 range has repeatedly encountered selling pressure in recent weeks, forming the basis for the current rebound. DOGE, after recovering from this area, is now approaching resistance near $0.074.
The article mentions that the Relative Strength Index (RSI) has rebounded from the oversold zone to around 45, indicating that buying momentum has recovered somewhat, but it has not yet risen above the neutral line of 50. This means that although short-term sentiment has improved, whether the rebound can continue depends on whether there can be further increases in trading volume.
Short positions are concentrated between $0.075 and $0.081.
Besides spot market trends, derivatives data is also seen as a clue supporting the rebound expectation. According to CoinGlass's 30-day liquidation chart, there is a relatively concentrated distribution of short liquidation positions in the $0.075 to $0.081 range, higher than the current trading range of DOGE.
This means that if prices continue to rise and break through near-term resistance, some short positions may be forced to close, creating additional buying pressure. In contrast, the current price shows relatively little long liquidation, suggesting that some downward liquidation pressure may have already been released during the previous decline.
Whether it approaches $0.08 depends on the strength of the breakout.
The article argues that once DOGE reaches around $0.074, short covering could amplify short-term gains and push prices up to test the $0.076 to $0.081 range. If prices can hold above $0.074 to $0.076, short-term momentum could strengthen further.
Conversely, if the $0.071 support level is breached, the current rebound structure will be weakened, and the price may fall back to $0.069 or even lower.
