Recently, the bearish pressure on Bitcoin (BTC) has not been significant, with prices originally fluctuating between $116,700 and $122,000. However, the selling pressure in the past 24 hours has caused it to drop below the lower range. Even as BTC fluctuates, Dogecoin has not shown strong momentum, and the level of $0.25 that bulls hoped to hold has been easily breached. As of the time of writing, the next possible price target is $0.196.
Technical indicators give a bearish signal for Dogecoin's trend:
Its price range (white) has expanded from $0.142 to $0.25, with the 50-period moving average slightly below the median level of $0.196, both forming support.
However, it failed to hold the support level of $0.25 last week, and the signal is clear. As of the time of posting, the OBV indicator has hit a new low compared to last week, and the RSI indicator has fallen below the neutral level of 50, both indicating a bearish advantage.
If it falls below $0.195, it will clearly point to the lower range of $0.142. Before that, swing traders may not rush to short.
From the liquidation heatmap:
The two-week liquidation heatmap shows that there is some liquidity below $0.2, with $0.227 and $0.25 being key magnetic zones to the north. The accumulation of liquidity means that although bears are dominant, prices may still be pushed up in the coming days.
The 3-day liquidation heatmap also shows that Dogecoin has the potential to rebound to $0.23, but whether this short-term rebound can be realized depends on BTC's performance. If BTC can reclaim the support level of $116,700, the probability of DOGE rebounding will be higher.
For long-term investors, last week's false breakout may be disappointing, but falling to the lower range should provide an opportunity to increase holdings again.
