• DOGE reversed its three-day market structure to bullish.

  • The memecoin could rise again if it breaks above the trendline resistance.

The price of Dogecoin (DOGE) has remained stable over the past few months, successfully holding the $0.056 support area. According to data, this situation has occurred five times since September 2022, resulting in significant gains for DOGE holders. However, market observers have begun to notice some factors that may lead to a price correction, including the growth of DOGE's market value to realized value ratio (MVRV) over the past week.

On the technical level, DOGE's price chart also seems to indicate a possible small decline. Overall, although DOGE has shown strong resistance to declines in the near term, its future trend still has certain risks and uncertainties. For investors and traders, paying attention to market dynamics, staying alert to risks, and adjusting investment strategies in a timely manner may be the best choice to deal with the current market conditions.

DOGE bulls struggle with HTF trendline resistance

Over the past month, the price of Dogecoin (DOGE) has rebounded and has once again touched the late 2022 trendline resistance (yellow). However, the rally has broken through the recent lower high of $0.06858, and the market structure is bullish. At the same time, the RSI indicator has also climbed above the neutral 50 mark, indicating that bulls have the upper hand. The on-balance volume has also been in a slow upward trend since July.

Although Dogecoin’s price action has formed a series of lower highs over the past few months, this rebound could indicate that a major uptrend is brewing in the market. The current resistance is above the trendline at $0.083 and $0.095. If the bulls can break through these resistance levels, the price of Dogecoin could enter a more stable upward channel.

It is worth noting that since December 2022, the price of Dogecoin has formed a series of lower highs, but has not shown a convincing uptrend in the higher time frames. Therefore, although the market structure shows a bullish trend, investors still need to remain cautious and pay close attention to price movements and volume changes.

Hyblock data reveals some information that traders and investors can benefit from

The heat map of liquidation levels for the one-year lookback period shows that a move toward the $0.081 and $0.086 areas could trigger a surge in liquidations. Now that DOGE is trading above $0.066, it is in the previous HTF liquidation interest area, with a move to $0.086 expected.

AMBCrypto's analysis of liquidation levels on shorter timeframes suggests that short sellers can find profitable trades. The cumulative liquidity level Delta is in the red, indicating that short sellers who are already in a good position may face some pain as prices climb. To the north, the $0.0069-0.0705 area has seen multiple short liquidations worth millions of dollars.

Moreover, the $0.07 area coincides with the higher timeframe trendline resistance. Therefore, short sellers can wait for another move back to this area before going short. This short-term idea will be invalidated if DOGE climbs above $0.0725. Their take-profit target is $0.06523, which is nearly 7% below $0.0705.

DOGE’s price action has attracted a lot of attention from investors and traders, with many looking forward to seeing how it performs in the coming months. Although DOGE has experienced some wild price swings over the past few months, its underlying technology, community support, and uniqueness continue to attract investors.

Short sellers may benefit from DOGE's price action in the short term, especially given factors such as liquidation levels, accumulated liquidity levels, and trendline resistance. However, long-term investors may be bullish on DOGE's prospects, especially amid the continued development of blockchain technology and the cryptocurrency market.

It is worth noting that the volatility and risk level of the DOGE market is high, and traders and investors should exercise caution when making trading decisions. They should pay close attention to market dynamics, conduct in-depth research, and develop appropriate risk management strategies. In addition, they should ensure that they understand the fundamentals, technical foundations, and market potential of DOGE in order to make informed decisions in the dynamic cryptocurrency market.

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