Dogecoin (DOGE) is currently forming a double bottom pattern on the price chart, suggesting a possible strong rebound. However, technical indicators and liquidation levels indicate that the price may oscillate between $0.35 and $0.45 in the short term, providing strength to bulls and driving rebounds in the coming weeks.
Key support and resistance areas
According to Fibonacci retracement and extension levels, the key support for Dogecoin is between $0.36 and $0.38, which is also the current local demand zone. Support below is at $0.272 and $0.215, but given the current market conditions, DOGE is unlikely to drop below these levels in the short term.
On the daily chart, the RSI indicator has dropped to 53, indicating a weakening bullish momentum, but remains in the neutral zone, meaning buyer strength is still dominant. Meanwhile, the OBV (On-Balance Volume) is still above the local highs formed during the November uptrend, showing weak selling pressure. If the OBV falls below these marked levels, a bearish bias may emerge.
Liquidation heatmap and liquidity analysis
The liquidation heatmap shows that the liquidation levels for DOGE are concentrated between $0.485 and $0.355, the latter coinciding with the current demand zone, which may be revisited in the coming days or weeks.
If the price falls below $0.395 and $0.355, it may lead to long-term adjustments. On the other hand, there is high liquidity around $0.395 and $0.425, which may become the boundaries for short-term oscillation.
Prediction for future trends
If DOGE breaks above $0.43, it may retest the $0.50 level, indicating a strong rebound. However, if it falls below the support levels of $0.395 and $0.355, it may enter a deep correction and long-term consolidation phase.
In summary, Dogecoin is currently in a relatively neutral technical state, and may maintain range-bound oscillation in the short term. Investors need to pay attention to the breakout of support and resistance levels to determine the future trading direction.