Dogecoin Price Analysis: Is it About to Break Through $0.50?
It has shown signs of potential growth. The recent double-bottom pattern has sparked hopes for a strong rebound. However, technical indicators and market conditions suggest that Dogecoin may be trapped in range-bound fluctuations in the short term. What will be the next move for the token? Let’s analyze the key levels and signals to understand where Dogecoin might head.
Dogecoin has remained strong above the support area of $0.36-$0.38. Traders have marked this area using Fibonacci retracement levels. The $0.143 level from the July high has become a support level, providing a solid foundation. Additionally, the RSI has dropped to 53, indicating a weakening bullish momentum. However, the reading remains above 50, suggesting that buyers still control the market.
Currently, the likelihood of a significant drop to lower support levels such as $0.272 or $0.215 seems low. The balanced trading volume is still above the November highs. If the OBV breaks below these levels, a bearish shift may occur. But for now, selling pressure remains weak, with bulls in control.
A close look at the liquidation heatmap reveals that Dogecoin's price may stay within a narrow range. Traders are focusing on the two key levels of $0.485 and $0.355. The $0.355 level aligns with the local demand area, which may come into play soon.
Additional liquidity is building at $0.34, which could pull the price down. The heatmap also shows considerable liquidity around $0.395 and $0.425. If Dogecoin struggles to gain momentum, the price action may remain within this range for some time.
