- Dogecoin stabilizes around $0.10, showing early signs of recovery from recent selling pressures.
- Key support zone of $0.09–$0.105 may offer a foundation for a potential rally toward $0.16.
- A break below $0.09–$0.105 could trigger further downside, nullifying the current recovery setup.
Dogecoin (DOGE) is showing initial signs of a possible recovery after a period characterized by pressures that led to its decline. The Dogecoin appears to have stabilized around an important zone of support, and as such, the selling pressure might be slowing down.
Dogecoin Holds Key Support
A well-known crypto analyst, CryptoPulse, pointed out a “Buy the Dip” opportunity for DOGE, as the coin appears to be retracing within a significant weekly support area ranging from $0.09 to $0.105. While this area has been a source of resistance, a hold at this point could present an important foundation from which a potential move toward the $0.15-$0.16 region might begin.
However, this setup also poses one clear risk: if it breaks below the support range of $0.09 – $0.105, it could result in additional downward moves, nullifying the existing recovery setup. Investors are closely observing this critical zone for any sign of buying or selling.
At press time, DOGE is trading at $0.1322, with a 24-hour trading volume of $1.80 billion and a market capitalization of $22.22 billion. The DOGE has gained 3.49% over the last 24 hours, indicating renewed interest among investors.
Also Read | Dogecoin (DOGE) Eyes $0.127 Support After Classic Bull-Bear Cycle
Dogecoin Stabilizes After Liquidity Sweep
Moreover, another analyst, BitGuru Crypto, emphasizes the importance of the fact that DOGE has just experienced a marked sweep of its liquidity due to the prolonged period of corrections.
This process is likely to have eliminated weak long positions close to major support zones, which may create a foundation for a more sustained rally. At present, Dogecoin is holding up well around its lows, but it seems that the selling pressure is easing.
While Dogecoin is testing this critical support level, the focus will be on the ability to hold it and initiate a reversal. If so, it could continue to move further up, providing a short-term trading opportunity for those entering the market at lower levels.
Also Read | Dogecoin (DOGE) Faces Brutal Test: Jan 17 Target $0.144
