Dogecoin Price Outlook: Could a Final Liquidity Sweep Spark the Next Surge?
July 18, 2026
Dogecoin’s price has been on a journey recently, approaching significant support levels against both Bitcoin and the U.S. dollar. However, the potential for a reversal is still uncertain. A scenario where Dogecoin dips below $0.055 only to recover swiftly could signal the establishment of a bottom, while a move to reclaim levels between $0.075 and $0.10 would provide strong evidence for a new cycle for $DOGE.
In the realm of $DOGE/$BTC trading, Dogecoin finds itself in a familiar position. It is currently testing a critical long-term support zone against Bitcoin after a prolonged period of underperformance. The setup mirrors the final phase of the previous $DOGE/$BTC cycle, culminating in a significant breakout in 2021.
Analyzing the monthly chart of $DOGE/$BTC, we can observe two distinct downtrends. The first one spanned from Dogecoin’s peak in 2014 to late 2020, while the current decline commenced after the high in May 2021, retracing back to a support level near 0.0000011 $BTC. Holding this level could pave the way for Dogecoin to establish a relative bottom and potentially outpace Bitcoin. However, the pair must halt the pattern of lower highs and break the descending resistance line before any confirmation of a new bullish phase for Dogecoin.
A breakthrough of nearby resistance levels would indicate a shift of capital from Bitcoin into $DOGE, potentially boosting Dogecoin’s dollar value even if Bitcoin remains range-bound. Nonetheless, broader improvements in the altcoin market may also be necessary for this scenario to fully materialize. Conversely, if $DOGE/$BTC loses its current support and continues to set new lows, the bullish comparison would significantly weaken. Unless buyers validate a breakout, the chart hints at a possible repeated cycle rather than a definitive trend reversal.
In terms of price action, Dogecoin is currently facing pressure following a series of lackluster weekly movements. However, the chart suggests a potential rebound once the price breaches the longstanding support zone near $0.055. This prospective sweep below $0.055 could help eliminate lingering sell-side liquidity before buyers embark on a more robust recovery endeavor.
The $0.055 level has proven to be a significant support area for Dogecoin several times since 2022. A brief dip below this level followed by a swift recovery would imply a failure by sellers to sustain control, setting the stage for a more solid foundation for the upcoming price action. Nevertheless, Dogecoin is still entrenched in a pattern of lower highs and lower lows. Buyers would need to reclaim the $0.075 mark initially, followed by the $0.085-$0.10 region, for any meaningful structural improvement on a weekly timeframe.
If Dogecoin fails to maintain its position above $0.055 in a sustained manner, the scenario for a rebound would lose strength, potentially transforming the liquidity sweep into a genuine breakdown. Until the price successfully tests or defends this crucial support level, the outlook for the next bullish move remains uncertain.
Investors and enthusiasts will need to closely monitor these key levels and developments to gauge the potential for Dogecoin’s next significant rally.
