TLDR
Dogecoin maintained crucial support levels during recent market downturn
$86.29 million in DOGE long positions were liquidated on December 9
Price held strong at $0.40 despite market-wide leverage flush
Funding rates reset to lower levels, potentially encouraging new buying
Strong spot market activity suggests underlying bullish sentiment
The cryptocurrency market experienced its largest leverage flush out since April 2021 on December 9, but Dogecoin has shown remarkable stability. While many cryptocurrencies faced steep declines, DOGE maintained its position around the $0.40 price level, demonstrating unusual market resilience.
Data from Coinglass reveals that $86.29 million in DOGE long positions were liquidated during the market event. This represents the highest single-day liquidation volume for Dogecoin since the 2021 bull market peak, indicating the scale of the market movement.
Technical analysis of the DOGE/USDT trading pair shows that Dogecoin has maintained a crucial uptrend line on the 4-hour chart. This trend line has served as dynamic support, with the price touching but not breaking below it on three separate occasions since mid-November.
Market data indicates strong buyer interest at current levels. Each time the price has approached the trend line, it has bounced back, suggesting sustained confidence among investors during price dips. This pattern has repeated consistently through the recent market volatility.
$DOGE looks incredible
Whole market shat itself but it barely flinched + didn't break structure
Now funding has completely reset and a ton of OI has been washed out
Won't be long until this is trending hard again IMO pic.twitter.com/EAaecaFu36
— CRG (@MacroCRG) December 10, 2024
The $0.47 price point has emerged as a key resistance level for Dogecoin. Multiple tests of this level have occurred, with each attempt meeting selling pressure. These repeated tests without breakthrough suggest a consolidation phase may be underway.
Looking at market structure, the reduction in open interest in stablecoin-margined contracts presents a clearer picture of the current market dynamics. This decrease suggests a clearing out of leveraged positions and speculative traders from the market.
Funding rates have reset to lower levels following the recent market movement. This development reduces the cost associated with maintaining long positions in Dogecoin, potentially creating more favorable conditions for new market participants.
The Cumulative Volume Delta (CVD) shows an interesting divergence between futures and spot markets. The futures CVD has dropped below spot market levels, indicating different sentiment between these two market segments.
Spot market activity has remained notably strong, suggesting sustained interest from longer-term holders and investors. This contrasts with the more volatile futures market, where traders often take shorter-term positions.
Trading volume analysis reveals consistent activity at the current price levels, with spot market volumes maintaining steady levels despite the broader market volatility. This suggests ongoing interest from buyers at current price points.
The price action around the $0.40 level has formed a clear support zone, with multiple tests of this level showing strong buying pressure. This price point has become increasingly important as a reference for market participants.
Market data shows that while leveraged positions were cleared out during the recent movement, spot market holdings have remained relatively stable. This suggests that long-term holders have maintained their positions through the market volatility.
Order book analysis reveals substantial buying interest below current price levels, with notable support clusters forming around key technical levels. This suggests potential price stability even if further market pressure emerges.
Recent trading patterns show decreased volatility following the liquidation event, with price action consolidating around current levels. This stabilization period often precedes new market movements.
The current market structure shows Dogecoin trading within a defined range, with clear support and resistance levels established. At press time, DOGE trades at $0.40, maintaining its position above key technical support levels.
The post Dogecoin (DOGE) Price: Maintains $0.40 Support Level Despite $86M Liquidation Event appeared first on Blockonomi.
