The $65K short liquidation of DOGE at $0.400 signals a strong upward momentum, as significant short liquidations typically
indicate aggressive buying pressure. Here's what it could mean and what to watch for next:
Key Takeaways:
1. Market Sentiment Shift: This liquidation suggests bullish sentiment is returning, with traders positioning for higher prices.
2. Potential for a Short Squeeze: If more shorts are forced to cover, $DOGE could experience a rapid price rally.
3. Breakout Watch: $DOGE breaking and holding above $0.400 is critical; sustained volume could propel it higher toward the next resistance zone.
Next Moves to Monitor:
1. Resistance Levels:
$0.45: Psychological barrier and a key historical resistance.
$0.50: Major psychological milestone, likely to trigger profit-taking.
2. Support Levels:
If DOGE retraces, watch $0.380 as a key support zone.
A failure to hold $0.350 could invalidate the bullish trend.
3. Whale Activity: Monitor wallet activity; large movements may signal future volatility.
$DOGE could target new highs, but traders should watch for signs of exhaustion or market manipulation.