Dogecoin Jumps 6% in Potential Bear Trap
Dogecoin's price advanced 6% on Tuesday, March 24, in a move that challenged prevailing bearish sentiment. The token reached approximately $0.0942, directly countering a recent "death cross"—a technical pattern that typically signals further price declines. This sharp reversal suggests a potential "bear trap," where a sudden price increase forces traders who were betting on a price fall to close their positions, adding to the upward momentum.
Prior to the jump, on-chain data indicated a distribution phase, with whale wallets sending DOGE to exchanges and creating sell pressure that pushed the price toward its month-long range low of $0.0887. The successful defense of this support level set the stage for the subsequent recovery.
Market Rallies as Geopolitical Risks Subside
The cryptocurrency rebound was not isolated. Traditional markets also gained, with the S&P 500 and Nasdaq trading higher while the U.S. dollar declined. This risk-on sentiment was driven by traders paring back their more hawkish bets on Federal Reserve policy. The rally was further supported by easing geopolitical tensions after President Trump announced a five-day pause on strikes against Iran.
Investor reaction was swift, lifting the global digital asset market cap by 0.74% to $2.43 trillion. The improved sentiment provided a tailwind for major cryptocurrencies and meme coins alike, as capital flowed back into assets perceived as higher risk.
Conflicting Signals Put $0.10 Resistance in Focus
Looking ahead, traders are navigating a complex technical landscape. While the bearish death cross and previous whale selling initially pointed to weakness, the strong rebound has brought bullish patterns into play. Some analysts are now monitoring for a potential "inverse head and shoulders" formation, a classic reversal pattern that could signal a new uptrend.
The key battleground for Dogecoin now lies at the $0.0955 to $0.10 resistance zone. A decisive breakout above this area could validate the bullish reversal and open a path toward the $0.15 target. Conversely, if momentum falters, a drop below the $0.092 support level could trigger a retest of the recent lows around $0.088.
