Despite renewed attention from Elon Musk's interaction with a Dogecoin-related post, market participants have been fixated on an uncommon series of weekly buy signals that have so far failed to produce meaningful price momentum.

According to Whale Insider, reporting on X, Musk's engagement marked the first time the billionaire has liked a Dogecoin [DOGE]-related memecoin post since DOGE itself — the largest memecoin by market capitalization.

Technical analyst Ali Martinez noted on X that the memecoin had generated a buy signal on the weekly timeframe. The TD Sequential indicator, a technical tool used to identify potential exhaustion points in an existing trend, has produced consecutive buy signals, which Martinez described as "a rare setup that could be warning a major bull rally is approaching."

However, DOGE's recent price action has remained subdued. Over the past 24 hours, daily trading volume declined by 20%, with the memecoin trading flat on the day and down 0.94% over the past week. Open Interest, which tracks the value of outstanding derivatives contracts, also showed little movement, slipping just 1.1% in a single day. The combination of lower volume and nearly unchanged Open Interest indicated that traders had not yet responded aggressively to the weekly signal.

Long-Term DOGE Bulls Losing Ground

After falling to the $0.088 support zone in February, buyers made a determined effort to hold that level. A recovery seemed to be building in May, but Bitcoin [BTC] encountered rejection during its push toward $82.5k, pulling the broader cryptocurrency market lower in tandem. For large-cap memecoins such as DOGE, broader risk appetite in crypto often remains an important backdrop because speculative flows can weaken quickly when Bitcoin loses momentum.

Spot taker Cumulative Volume Delta (CVD) data spanning the past three months indicated that taker buy volumes dominated spot markets from December through late March. CVD is commonly used to compare aggressive buying and selling activity in spot markets, making it useful for assessing whether rallies are being supported by demand rather than passive order-book liquidity. Taker buy volume briefly surged for several days in May, coinciding with Dogecoin's attempt to break above the $0.12 resistance zone.

That optimism has since dissipated. While taker sell dominance has not yet taken hold, DOGE was trading 17% below its former support level at $0.088.

Current Outlook for Dogecoin

AMBCrypto previously reported a week earlier that the liquidation map supported the possibility of a short squeeze toward $0.08. That scenario has not yet materialized.

The swing structure remained firmly bearish. From a technical standpoint, a bounce toward the $0.083–$0.087 Fibonacci golden pocket remains a possibility. On lower timeframes, the $0.075 area also served as a notable resistance zone.

Traders may watch for a move toward local highs at $0.078 as a potential selling opportunity, or await a test of the golden pocket. For Bitcoin, clearing the $67.2k area would be needed to signal readiness for a rally toward $77k.

If BTC breaks above this resistance, a short-term shift in market-wide sentiment could support a Dogecoin bounce. Conversely, a drop below $62.5k for BTC would make it significantly more likely that the leading memecoin would fall to new swing lows without a meaningful recovery.

Summary

Dogecoin's low volatility in recent days means the short squeeze thesis has not yet been invalidated. Market participants will need to monitor Bitcoin's price trends closely to assess whether the memecoin has the potential to rally or is headed toward new swing lows, while also watching whether DOGE volume, Open Interest, and spot CVD begin to confirm stronger participation.