Dogecoin Breaks Out as Global Liquidity Hits Key Levels
Dogecoin is showing signs of strength as the Global Liquidity Index trends lower within a descending channel. This channel’s lower boundary has consistently aligned with local bottoms in Dogecoin’s price, marked by orange circles on the chart. Now, Dogecoin has broken out and successfully retested a long-term trendline that dates back to its explosive rally in early 2021.
The chart highlights Dogecoin’s historic surge from under a penny in 2020 to its peak at $0.74 in 2021, followed by a correction down to key support near $0.15. A Fibonacci retracement overlay shows the 0.382 level at $0.14225—a zone of renewed interest. Price action is now coiling near the intersection of this Fib level and the descending yellow trendline, suggesting a potential inflection point.
Meanwhile, the Global Liquidity Index, featured at the top of the chart, continues its downward trend, reflecting a broader contraction in global liquidity over the past year. Historically, each contact with the bottom edge of this channel has corresponded with
