Dogecoin's price is back in the spotlight following a trendline breakout, sparking market optimism. However, liquidation pressure below $0.175 poses short-term risk for investors.
Analysts Turn Bullish After Trendline Breakout
Dogecoin (DOGE) price has once again gained the attention of investors after traders highlighted its technical breakout, sparking positive sentiment across the market. DOGE is trading at $0.1708, up nearly 4% in the past 24 hours. Crypto trader Naman noted that DOGE has completed a trendline breakout and retested the zone successfully. On March 30, he projected a price target of $0.89, citing a resistance zone at $0.5 as the next hurdle. 'It is now ready to start its rally upwards,' he stated, adding that beyond $0.5, DOGE has a 'freeway.'
Liquidity Risks Linger Below Key Support
According to data from TheKingFisher's liquidation scan, long liquidations are heavily stacked below the $0.175 level. This creates a potential liquidity magnet, meaning the price could briefly dip lower to clear out overleveraged positions. Above $0.185, however, short liquidations are sparse, hinting at limited fuel for an aggressive upside. Analyst Trader Tardigrade pointed out a bullish divergence on DOGE's hourly relative strength index (RSI), often signaling a short-term reversal. He commented, 'DOGE might be finding its bottom.'
DOGE Price Cycle Pattern Adds to Uptrend Narrative
ÐOGECAPITAL took a longer-term approach, comparing the current Dogecoin price chart to previous cycles in 2017 and 2021. The trader claimed that in year four of both prior cycles, DOGE surged 37x from its yearly open. In their analysis, the token is approaching the 'green and red zone,' historically a precursor to upward movement. They forecast a possible move starting as early as next month, although they clarified that this may not occur immediately.
Dogecoin's short-term price fate remains tied to both liquidity pressure and market sentiment. The current price zone around $0.170-$0.175 serves as a battleground, with bulls needing to defend it to maintain momentum. DOGE price watchers remain split between technical optimism and liquidity concerns, with volatility appearing likely in the days ahead.
