A new technical analysis based on the Order Block (OB) and Candle Liquidity Sweep (CLS) model suggests that Dogecoin (DOGE) is forming a bullish reversal structure

This model suggests that Dogecoin (DOGE) is forming a bullish reversal structure that could lead to a 50% price surge.

Technical analysis based on the Order Block (OB) and Candle Liquidity Sweep (CLS) model suggests that Dogecoin (DOGE) is forming a bullish reversal structure that could lead to a 50% price surge.

Dogecoin CLS & OB Chart Signals 50% Price Rally

Crypto analyst David Perk, shared on TradingView a smart money trading strategy for Dogecoin using a method called CLS and OB.

According to his analysis, Dogecoin’s recent price action on the daily timeframe shows a classic Model 1 execution of a smart money strategy. Currently, the meme coin has swept the 3-month CLS level, triggering liquidity below long-term support.

Dogecoin has also touched down into a well-defined Order Block, which was the last bullish candle before a major breakdown. Notably, the analyst’s Model 2 strategy suggests that this zone is being used for re-accumulation—an area where large players often re-enter after manipulating the market to shape out weak hands. Perk has highlighted the 61.8 Fibonacci retracement level as a potential pullback target for the meme coin, which could serve as a better entry point for smart money to trap more liquidity.

Following the liquidity sweep, Perk observed a Change in Orderflow Direction (CIOD), signaling a possibly bullish shift in Dogecoin’s momentum. This pattern, aligning with the Model 1 strategy, suggests that DOGE could climb back to reclaim the 50% range of the CLS candle. Moreover, it could act as a short-to-mid-term take-profit zone for traders.

If Dogecoin’s current CLS and OB structure holds, the cryptocurrency is expected to rally over 50% to reach the resistance range of $0.23 – $0.25. This move would also align with the historical behavior of Model 1 setups in high-time frame zones. Should Dogecoin’s volume and momentum increase even further, its surge could extend beyond the CLS midpoint into higher resistance zones above $0.43.

DOGE Gains Strength Amid Price Decline

In an X post, Trader Tardigrade shared a Dogecoin chart analysis noting that the meme coin has been in a downward trend since January 2025.

According to the analyst, throughout this downtrend, Dogecoin has broken below key support zones but never reclaimed any of these levels. The ‘break without reclaim’ pattern occurred multiple times over the past few months, cementing the bearish sentiment surrounding DOGE.

However, Trader Tardigrade has spotted a notable shift in DOGE’s price action. For the first time since its downtrend in 2025, Dogecoin has broken below the support level and successfully reclaimed it. This event is highlighted in the chart above.

The analyst also suggested that Dogecoin’s fundamentals are gaining strength, while its price may have reached a bottom, indicating the possibility of a bullish turnaround.