The trading price of Dogecoin (DOGE) is close to $0.2, and a major short seller liquidation cluster is forming, as the chart shows a potential trend.
The Dogecoin liquidation cluster forms around $0.208, creating key price targets for the upcoming market trends.
The weekly rising expanding wedge indicates that if support levels continue to hold, the next volatility may reach $1.40.
The inverse head and shoulders pattern on the hourly chart suggests a short-term target rise to $0.214.
Price action and market performance
As of now, Dogecoin (DOGE) is trading around $0.20, down more than 3% in the past 24 hours, with a cumulative decline of 10% over the past week. Daily trading volume is $1.4 billion, with Dogecoin experiencing a pullback after reaching a volatility high of $0.28.
According to CoinGlass data, trading volume reached $5.19 billion in the past 24 hours, an increase of 54%, with open contracts at $3.09 billion. Options trading volume increased by 30%, reaching $17 million, and open contracts increased by 13%, totaling $120,000. During the decline, the open contract volume for Dogecoin futures dropped from 19.7 billion to 15.36 billion, indicating a reduction in leveraged positions.
Liquidation chart and key price levels
The largest short seller liquidation cluster is located around $0.208. A price drop to this area may trigger short squeezes. Long liquidations remain dispersed, indicating lower downward pressure.
At the same time, the liquidation chart uses full leverage data, indicating that these key levels may be reached in weeks rather than days. Tracking these clusters helps predict potential locations for forced liquidations and the range of price fluctuations.
Technical patterns and potential reversal signals
A rising expanding wedge pattern has formed on the weekly chart. Previously, this pattern rose from $0.22 to $0.48, and the next target price is expected to be $1.40. The lower edge of the wedge acts as a support level, while the upper edge still constitutes resistance.
On the hourly chart, an inverse head and shoulders pattern is forming, with the neckline around $0.210, becoming a short-term resistance level. If the trading volume breaks through this level, the price of Dogecoin may retrace to the range of $0.214-$0.218.
Traders regard $0.208 as a key price target in the near term, and short seller liquidations may drive subsequent price movements.
Overall, Dogecoin (DOGE) is currently in a critical technical formation and a liquidation cluster, with potential for significant volatility in the short term. The current price trend indicates that both bulls and bears are in intense competition, and future movements may be influenced by both short seller liquidations and technical patterns.
If Dogecoin breaks through short-term resistance and maintains above key support levels, it may experience a rebound, with a target price potentially reaching $1.40. However, if it falls below key support levels, especially at $0.208, it could accelerate the downward trend. Investors need to closely monitor market movements and adjust strategies promptly.
