Dogecoin enthusiasts were treated to a rollercoaster ride during the July 9–10 trading session, witnessing an impressive 6% rally that saw the meme coin leap past resistance before experiencing a swift reversal. The surge, fueled by broader market optimism, has left traders pondering whether this marks the start of a sustained upward trend or just a fleeting moment of excitement.
Market Dynamics and Wider Influences
Recent macroeconomic developments have set the stage for this intriguing price action. The United States’ decision to extend its “Liberation Day” tariff deadline injected a dose of optimism into markets, temporarily easing trade tensions and boosting risk assets. Simultaneously, the prospect of a July interest rate cut by the Federal Reserve has added to the buoyant mood, with major financial institutions anticipating a potential cut of 25 to 100 basis points if inflation data disappoints.
This backdrop has provided a tailwind for cryptocurrencies, with high-beta assets like Dogecoin benefiting from a renewed risk appetite among traders. It’s against this backdrop that DOGE’s explosive rally unfolded, breaking through key resistance levels and capturing the imaginations of crypto investors. As explored in our recent coverage of Ethereum, Dogecoin Soar as Bitcoin Hits Highest Price in 3 Weeks, this optimism has been mirrored across other major cryptocurrencies, further fueling market enthusiasm.
The Price Action Unfolds
Dogecoin’s journey during the July 9–10 session was nothing short of dramatic. The coin catapulted from $0.170 to $0.186, with the breakout occurring between 19:00 and 20:00 on July 9. Trading volumes surged to 1.52 billion, nearly doubling the 24-hour average and underscoring the intensity of the rally. However, resistance at $0.186 proved formidable, with the price repeatedly rebuffed on heavy volume—a classic battle between bulls and bears.
Despite this resistance, support held firm around $0.180 to $0.181 as the session drew to a close, only to fracture in the final hour, with DOGE slipping by 0.55% to $0.180. This sharp reversal, marked by rising downside momentum, signaled potential institutional distribution as key support levels broke under heavy sell volume.
Technical Analysis: A Cup and Handle in the Making?
The recent price action has drawn the attention of technical analysts, with some suggesting that Dogecoin may be forming a classic “cup and handle” pattern on the weekly chart. This bullish formation, if validated by a breakout above $0.195 with substantial volume, could pave the way for a more sustained rally, potentially propelling DOGE toward $0.25 and beyond.
Analysts are keeping a close eye on whether Dogecoin can reclaim the $0.186 level and convert it into support—a critical step for any bullish narrative. Should the downside persist, traders will likely look to $0.176 and $0.172 as potential support levels, drawing from prior consolidation zones.
A Balancing Act: Bulls vs. Bears
The current landscape for Dogecoin is a delicate balance of bullish optimism and cautious skepticism. While the recent rally has been impressive, the sharp reversal serves as a reminder of the volatility inherent in the crypto markets. RSI and OBV readings on lower timeframes suggest short-term exhaustion, but the overall macro sentiment remains bullish.
Institutional interest, as indicated by whale accumulation, adds another layer of intrigue to Dogecoin’s prospects. A decisive move above the $0.175–$0.20 resistance zone, especially accompanied by a spike in volume, could unleash a powerful rally—a tantalizing possibility for DOGE aficionados. This pattern of market dynamics is also seen in other cryptocurrencies, as detailed in our article on how Dogecoin, Solana, Ethereum Drive Crypto Markets Higher as Bitcoin Stays Flat.
Where Do We Go From Here?
As July unfolds, Dogecoin’s trajectory remains uncertain. The interplay between technical patterns and broader market factors will be pivotal in determining the coin’s future direction. While the current setup hints at the potential for a breakout, the path forward is fraught with challenges and opportunities alike.
For now, traders and investors alike will be watching closely, seeking clues in every price movement and volume spike. Whether Dogecoin’s recent rally marks the beginning of a sustained uptrend or merely a blip on the radar is a question that only time—and the markets—can answer.
Source
This article is based on: DOGE Hits Resistance on Bull Flag Breakout, But ‘Cup and Handle’ Points to Higher Moves
Further Reading
Deepen your understanding with these related articles:
- Crypto Traders Shrug Off Dormant Bitcoin Whale Moves, With Profit-Taking on XRP, DOGE, SOL
- BONK Leads Memecoin Amid Crypto Rally While the Token Approaches 1M Holder Milestone
- Meme Coin Cryptos on the Run Again: BONK, and WIF Lead the Charge
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
