Dogecoin (DOGE) is at a critical technical level around $0.50, which may define its next move. A significant amount of short positions could create conditions for a breakout.
The $0.50 Zone and DOGE Liquidity
According to Alphractal, the $0.50 zone contains a liquidity cluster valued at over $380 million, formed during DOGE's previous rally. This zone represents a concentration of short positions, and if selling pressure weakens, analysts believe these shorts could fuel a breakout.
DOGE/BTC Ratio and Memecoin Sector
The DOGE/BTC ratio is approaching a critical support zone, reflecting a pattern seen before the 2021 bull run. The broader memecoin sector is showing mixed performance, but the memecoin index has surpassed its 2021 market value, drawing attention to its relationship with BTC.
Technical Structure and Potential Elliott Wave Rally
The price structure of DOGE indicates a potential completion of Wave 4 in Elliott Wave Theory. Supporting indicators suggest a bullish momentum may be returning, with DOGE needing to hold above certain levels to confirm further upside potential. A rebound could trigger a breakout through $0.50, leading to a broader trend.
Dogecoin is positioned at a significant technical crossroads, with rising short interest and critical support levels converging. This sets the stage for a possible breakout, should DOGE maintain its current levels.
