Dogecoin price regained and moved past $0.17

China's willingness to return to the negotiation table with the United States on trade has favored global risky assets, such as cryptocurrencies. In response to this, Dogecoin price regained and moved past $0.17 after a bullish run in the night.

As the International Economic Forum in Switzerland approaches this weekend, China will begin discussing new trade terms with the U.S., setting the stage for a potential resolution to the trade war.

Dogecoin price benefited from broader market positive momentum as investors anticipate a reduction in the U.S.-China trade dispute. With market positivity, digital currencies like Dogecoin experienced growth potential.

Dogecoin price action analysis

Dogecoin price has shown resilience as it trades above the 200-4hour SMA at $0.1650, indicating that buyers are stepping in at lower levels to support the price.

The meme coin has also tested the resistance line from within a descending pattern, characterized by moving highs and lows, over the past fourteen days, according to the Dogecoin 4-hour price analysis.

A successful breakout pattern from this pattern will signify the start of Dogecoin’s journey towards reaching $0.20, which stands as an important price level for traders.

Moreover, technical indicators such as the moving average convergence divergence (MACD) and the relative strength index (RSI) also support the Dogecoin price recovery. Both indicators have turned bullish in the short term, further strengthening the view that the price may rise above the current resistance levels.

Dogecoin futures and options trading volume has increased by 115.21%, standing at $1.49 billion. Most traders’ commitment to the market, as shown by open interest numbers, indicates stronger confidence in price breakout potential.

Derivatives market activities indicate upcoming spot price changes that demonstrate traders expect additional price growth.

According to the data from futures exchanges, above $0.1755, around $10.96 million worth of short positions could be liquidated.

This level of liquidation shows the extent of leveraged short positions that traders took to anticipate further price declines. However, if the price moves higher and continues the rally, these shorts will be triggered to cover.

Dogecoin price gains could continue if the bulls succeed in pushing the price above the 50-hour SMA at $0.1714. A break above this level could open the door for further short liquidations and a potential rally towards the next resistance level at $0.18.

Crypto analyst, Trader Tardigrade, highlighted a bullish outlook for Dogecoin based on the formation of an inverse head and shoulders pattern on the hourly chart.

This technical reversal pattern usually indicates a shift of trend from bearish to bullish. The meme coin chart displays a left shoulder, a head, and a right shoulder, followed by a breakout above the neckline at approximately $0.17400, signaling increased buying pressure.

Additionally, the price action after the breakout further supports the bullish prediction, with Dogecoin price remaining higher and trending upward.

The inverse head and shoulders chart formation, together with price action above the neckline, suggested that the price will continue to rise.

Technical traders often view such breakouts as confirmation signals to enter long positions, expecting the trend to extend toward higher resistance zones.