Dogecoin [DOGE] recently caught attention after the TD Sequential indicator flashed a buy signal on its 4-hour chart, hinting at a possible short-term rebound.

The memecoin has been sliding for weeks, but at the time of writing it traded at $0.218, holding near a key zone of support.

Such buy signals often precede local reversals, especially when sentiment and positioning align.

Therefore, traders are closely watching if this signal can trigger a bounce that stabilizes prices and sets the stage for a stronger recovery.

The daily chart highlighted a developing cup-and-handle structure that could fuel Dogecoin’s next breakout. This pattern suggested a bullish continuation, if price clears neckline resistance.

The crucial resistance levels were at $0.244 and $0.277, which must be conquered for momentum to accelerate. If confirmed, DOGE could extend its rally toward $0.42, the projected target from the structure.

However, failure to break these barriers could trap bulls. Therefore, the next few sessions are critical in determining if this bullish setup can sustain its upward potential.

Market sentiment on Binance derivatives currently leans strongly bullish, with long accounts holding 75% dominance compared to just 25% short accounts.

Data from the liquidation heatmap shows significant pressure zones, with heavy liquidation clusters concentrated near $0.215 for shorts and $0.225 for longs.

If DOGE dips below $0.215, long liquidations may accelerate selling, while a surge beyond $0.225 could trigger short squeezes.

Despite short-term volatility around $0.215–$0.225, the alignment of technical patterns and sentiment makes a breakout above $0.244 and $0.277 increasingly likely.

Once these levels are cleared, DOGE has a strong chance of extending toward $0.42. Therefore, the outlook favors buyers, with current market conditions supporting a sustained recovery rally rather than further decline.$BNB #BTCPrediction #BTCWhalesMoveToETH