DOGE Price Bounces Off Key Support Zone Amid Short Liquidation Frenzy

The Dogecoin price is showing early signs of recovery after consolidating within a pre-defined range. The memecoin has rebounded toward a descending trendline, while momentum indicators are beginning to improve.

After successfully defending the $0.071-$0.072 demand zone, DOGE bounced from this support and attempted to break above a descending trendline that has capped every recovery since late June.

The Relative Strength Index (RSI) has climbed to around 45, recovering from oversold territory and pointing to improving buying momentum.

A significant concentration of short liquidations is positioned between $0.075 and $0.081, which suggests that many traders are betting on further downside, creating a potential fuel source for an upside move.

If Dogecoin manages to break above the immediate resistance near $0.074, these leveraged short positions could begin to unwind, forcing traders to buy back their positions.