Dogecoin ( $DOGE ) has been showing signs of potential growth. A recent double bottom pattern raised hopes of a strong rally. However, the technical indicators and market conditions suggest that Dogecoin may be stuck in a short-term range. What’s next for the coin? Let’s break down the key levels and signals to understand where Dogecoin might head.
Local Demand Zone Supports Dogecoin Bullish Stance
Dogecoin has been holding strong above the $0.36-$0.38 support zone. Traders marked this zone after using Fibonacci retracement levels. The $0.143 level from July’s high turned into support, offering a solid foundation. Also, the RSI dropped to 53, signaling weaker bullish momentum. However, the reading stays above 50, showing buyers still control the market.
A sharp drop to lower support levels like $0.272 or $0.215 seems unlikely for now. On-Balance Volume remains above the November highs. If the OBV falls below these levels, a bearish shift could occur. But at this moment, selling pressure remains weak, leaving the bulls in charge.
Liquidity Heatmap Suggests Neutral Momentum
A closer look at the liquidation heatmap shows that Dogecoin’s price might stay within a narrow range. There are key levels at $0.485 and $0.355 that traders are watching. The $0.355 level lines up with the local demand zone, which could come into play soon.
Additional liquidity is building at $0.34, which may pull the price downward. The heatmap also shows significant liquidity around $0.395 and $0.425. If Dogecoin struggles to gain momentum, price action could be stuck in this range for a while.
However, if the price breaks through $0.43, a retest of $0.50 may be on the horizon. But if the price drops below $0.395 or $0.355, a deeper correction could follow. The next few days will be crucial for determining whether the bulls can push higher.
