- Dogecoin (DOGE) has gained 2% over the past week, showing resilience despite market volatility.
- RSI signals suggest a potential short-term reversal, indicating relief from the current downtrend.
- A liquidation scan highlights $0.1789 as a critical price point, with significant long liquidation pressure below $0.175.
- Limited upside potential above $0.185 due to minimal short liquidation pressure.
Dogecoin (DOGE) is starting to show resilience after facing a significant hit from the recent volatility in the cryptocurrency market. Despite the pullbacks seen across the board, DOGE has managed to edge up slightly, gaining 2% over the past week.
As of the latest data, Dogecoin briefly dipped to $0.1665 before seeing a modest rebound, now trading at approximately $0.170845. Its 24-hour trading volume stands at $2.62 billion, and the market cap is $25.34 billion. However, in the last 24 hours, the DOGE price has experienced a decrease of 5.96%, reflecting the ongoing volatility.
Dogecoin Shows Signs of Recovery
Crypto market observers have been keeping a close eye on DOGE’s price action, and some are already spotting potential signs of recovery. Trader Tardigrade, a respected crypto market analyst, noted that Dogecoin might be finding its bottom.
According to their analysis, the relative strength index (RSI) is signaling a bullish divergence on the hourly chart, which often precedes a short-term reversal in price. This could indicate that DOGE might experience some relief from the current downtrend in the near future.
DOGE Faces Liquidity Pressure Below $0.175
Adding to this outlook, data from TheKingFisher’s liquidation scan provides valuable insights. The scan indicates a critical price point around $0.1789, with a significant pile of long liquidations stacked just below the $0.175 mark.
This suggests a liquidity magnet effect, where the price may be drawn down to these levels as liquidation pressure mounts. In contrast, the scan reveals much less fuel for short liquidations above $0.185, indicating that the upside potential might be limited for now.
Dogecoin’s price has experienced some recovery, currently trading at $0.170845, despite recent fluctuations in the broader market. RSI signals indicate a potential short-term reversal, suggesting that a temporary relief from the ongoing downtrend may be in play.
A liquidity scan shows notable liquidation pressure just below the $0.175 level, which could form a target zone for Dogecoin’s price movement. As the market continues to stabilize, Dogecoin’s performance will likely depend on broader market conditions and investor sentiment.
However, these early signs of recovery could provide an opportunity for those keeping a close eye on the coin’s movement.
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