An analysis of the current Dogecoin market situation suggests that the cryptocurrency may be on the verge of significant price changes, considering accumulated liquidity and adjusted support levels.
Liquidation Data and Its Impact
According to analysis, the liquidation level for Dogecoin (DOGE) shows significant pressure at the $0.50 level, with over $380 million locked in short positions. Historically, such setups have preceded sharp price increases following sustained accumulation phases.
Charts and Support Levels
A 500-day heatmap shows that Dogecoin traded mostly below $0.10 between March and August 2024, forming a rounded bottom near $0.06. From September to November 2024, the price surged past $0.15, but faced rejection at $0.50. Current support is identified in the range of $0.08 to $0.11.
Overall Market Condition for Memecoins and DOGE
The Meme Index shows early signs of recovery but DOGE remains the dominant memecoin, trading at $0.18 with an open interest of $1.648 billion. Nevertheless, overall sector liquidity is weak, and traders are awaiting trend confirmation.
Overall, the state of Dogecoin and the memecoin sector signals potential volatility that could result in significant growth. Adopting a cautious approach may allow investors to monitor upcoming market developments.
