Dogecoin Technical Indicators Suggest Possible Short-Term Bearish Trend With Potential Price Bounce

• Dogecoin failed to maintain the $0.25 support, signaling short-term bearish momentum.

• Bitcoin’s recent price range between $116.7K and $122K influences Dogecoin’s potential recovery.

• COINOTAG analysis highlights key liquidation zones that may trigger a price rebound in the coming days.

Dogecoin bearish signals emerge after $0.25 breach; liquidation heatmaps suggest a bounce. Follow COINOTAG for the latest crypto price insights.

Dogecoin Technical Indicators Point to Bearish Momentum

Dogecoin’s price action reveals a clear bearish trend after failing to hold the critical $0.25 support level. The 1-day chart shows the range extending from $0.142 to $0.25, with the 50-period Moving Average near $0.196 acting as a potential support zone. However, recent price movements indicate sellers dominate, as the On-Balance Volume (OBV) reached new lows and the Relative Strength Index (RSI) dipped below 50, confirming downward pressure.

How Does Bitcoin’s Performance Affect Dogecoin’s Price Movement?

Bitcoin’s stability between $116.7K and $122K has created a mixed environment for altcoins like Dogecoin. A failure by Bitcoin to reclaim the $116.7K support level could exacerbate Dogecoin’s decline. Conversely, if Bitcoin stabilizes above this threshold, it may provide the momentum needed for Dogecoin to bounce back toward $0.23, as indicated by recent liquidation heatmaps.

Source: DOGE/USDT on TradingView

Liquidation Heatmaps Reveal Key Price Levels for Dogecoin

Analysis of the 2-week liquidation heatmap shows significant liquidity clusters just below the $0.20 mark, suggesting strong support around this level. Overhead resistance zones at $0.227 and $0.25 remain critical barriers. These liquidity pools indicate that despite bearish pressure, price rebounds are plausible if buyers step in near these zones.

Source: Coinglass

What Does the Short-Term Liquidation Heatmap Suggest for Dogecoin?

The 3-day liquidation heatmap reinforces the possibility of a short-term price rebound to approximately $0.23. This bounce depends heavily on Bitcoin’s ability to regain and hold the $116.7K support level. Traders should watch these key levels closely to anticipate potential market shifts.

Source: Coinglass

What Are the Next Price Targets for Dogecoin?

If Dogecoin breaks below the $0.195 level decisively, the next support target is near the range low of $0.142. This would confirm a deeper bearish phase. However, if the $0.196 mid-range support holds, swing traders may find opportunities to enter positions while waiting for clearer directional cues.

Frequently Asked Questions

What is causing Dogecoin’s recent price decline?

Dogecoin’s price decline is primarily due to bearish technical indicators, including a break below the $0.25 support level and weakening momentum shown by OBV and RSI metrics.

How can Bitcoin’s price affect Dogecoin’s market movement?

Bitcoin’s price stability is crucial; if Bitcoin holds above $116.7K, it could support a Dogecoin rebound. Conversely, Bitcoin dropping below this level may increase selling pressure on Dogecoin.

Key Takeaways

• Bearish Technical Signals: Dogecoin failed to defend $0.25 support, with OBV and RSI indicating selling pressure.
• Bitcoin Influence: BTC’s price range impacts Dogecoin’s short-term price movements and potential recovery.
• Liquidation Heatmaps: Show key liquidity zones near $0.20 and resistance at $0.227-$0.25, suggesting possible price bounce.

Conclusion

Dogecoin is currently under bearish pressure after losing the $0.25 support, but liquidation heatmaps and Bitcoin’s price action suggest a possible short-term bounce near $0.20. Investors should monitor key support levels and Bitcoin’s performance closely. COINOTAG will continue providing timely updates on Dogecoin and broader crypto market trends.