Dogecoin holds above key support levels, with bullish momentum still in control.
The liquidation heatmap shows a narrow price range, with key levels at $0.395 and $0.425.
A break above $0.43 could lead to a $0.50 retest, while a fall suggests correction.
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.
https://twitter.com/CryptoAmb/status/1867963511843733517 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.
The post Dogecoin Price Analysis: Is a $0.50 Breakthrough on the Horizon? appeared first on Crypto News Land.
