๐จ Dogecoin Price Forecast: Nearly 1% of $1.65B $DOGE OI at Risk of Liquidation at this Key Level
Dogecoin (DOGE) is at $0.17, witnessing an intraday pullback of nearly 1%. However, the meme coin prepares for a bounceback with a falling wedge pattern, increasing the possibility of shaking out short-sided traders.
Holding its ground near the $0.17 mark, Dogecoin prepares for a high-momentum move.
With bullish traders eyeing the Dogecoin price to hit $0.20, the key question remains: will this recovery rally liquidate nearly 1% worth of $1.65B DOGE open interest?
The Dogecoin price action reflects a declining trend in motion in the 4-hour timeframe. Since April 23, the swing lows formed in Dogecoin connect to form a support trendline.
However, the bullish failure to create new swing highs has led to an overhead resistance trendline. The converging trendlines gave rise to a falling-wedge pattern, hindering the current DOGE price trend.
At present, the Dogecoin price tests the lower boundary line of the falling wedge pattern with a lower price rejection. This hints at the possibility of a new upswing within the pattern.
The MACD and signal lines support the upside chances as the average lines prepare for a positive crossover. Furthermore, Dogecoin is preparing to take off as it takes lower price rejection from the 200 simple moving average line.
The prevailing correction within the falling wedge pattern has led to the breakdown of the 50 and 100 SMA lines. This increases the possibility of a negative crossover between the average lines, potentially triggering a sell signal.