DOGE breaks bullish pattern: Price may reach new highs
Dogecoin (DOGE) is currently forming a bullish flag pattern, showing strong bullish potential. Recently, the DOGE/USD currency pair rose from $0.1520 to $0.1850, forming a strong upward trend and building a flagpole in the process. Currently, the price is consolidating between $0.1680 and $0.1840, paving the way for further upward movement.
Currently, Dogecoin is testing the upper boundary of a flag pattern, in the range of $0.1810 to $0.1840. If this resistance is broken, it may confirm a bullish flag pattern and push the price up to around $0.22. A breakout will bring strong market sentiment, attracting more investors to participate. If the price falls below $0.1680, it may lead to the bullish outlook being invalidated and reverse into a bearish trend.
Short liquidation crisis: Breaking through $0.19 may trigger volatility
Investors focusing on the DOGE market should be wary of potential short liquidation risks. Currently, approximately $55 million in short positions are located around $0.19, and once the price breaks through this level, shorts will face significant liquidation pressure, potentially triggering a rapid price increase. This could push the DOGE price towards the key resistance ranges of $0.22 and $0.25.
Public sentiment and smart money sentiment are diverging:
Although the DOGE community's sentiment index has reached 0.77, showing an optimistic atmosphere, the sentiment of smart money indicates a cautious attitude towards the future price trend of DOGE, with a smart money sentiment reading of -0.32. The divergence between the two may lead to sharp reactions in the market during volatility, further affecting the price trend.
Conclusion:
Dogecoin is currently at a critical breakout point, closely watching for a breakout in the range of $0.1810 to $0.1840. If it successfully breaks through the $0.19 resistance level, it could trigger large-scale short liquidations, pushing the price rapidly up to $0.22 or even higher.
However, if it falls below the support level, it may retrace to lower areas. The divergence in market sentiment and the pressure from short positions will significantly impact future trends, so vigilance is necessary.
