Dogecoin (DOGE) is currently forming a double bottom pattern on the price chart, suggesting a potential 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 a rebound in the coming weeks.
Key support and resistance areas
According to Fibonacci retracement and extension levels, the key support for Dogecoin is located between $0.36 and $0.38, which is also the current local demand zone. The lower support levels are at $0.272 and $0.215, but considering the current market situation, DOGE may not break below these levels in the short term.
On the daily chart, the RSI indicator has dropped to 53, indicating a weakening bullish momentum, but it remains in the neutral zone, suggesting that buying power still dominates. At the same time, the OBV (On-Balance Volume) remains above the local high formed during the November uptrend, showing weak selling pressure. If OBV breaks below these marked levels, a bearish bias may occur.
Liquidation heatmap and liquidity analysis
The liquidation heatmap shows that the liquidation levels for DOGE are concentrated between $0.485 and $0.355, with the latter aligning with the current demand zone, suggesting a potential revisit in the coming days or weeks.
If the price falls below $0.395 and $0.355, it may lead to a long-term adjustment. On the other hand, there is high liquidity around $0.395 and $0.425, which may become the boundaries for short-term oscillation.
Future trend prediction
If DOGE breaks above $0.43, it may retest the $0.5 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 a prolonged consolidation phase.
In summary, Dogecoin is currently in a fairly 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 future trading directions.