Technical indicators show an impending price rally in Dogecoin (DOGE), after it reclaimed $0.22. Market movement could follow the breakout above $0.22 due to $644 million worth of leveraged positions at risk.
TD Sequential Indicator Suggests Rebound
The TD Sequential indicator triggered a buy signal during Dogecoin’s daily timeframe, which indicates exhaustion in existing trends. The price pattern tends to occur before a price rally emerges to mark potential regions where market selling power declines. The indicator has proven its ability to identify key market turns in Dogecoin thus making it a widely tracked indicator for traders.
Coinglass’s liquidation heatmap shows a total amount of $644 million in liquidation positions with a price range of around $0.21. The Dogecoin price could begin a short squeeze. This could prompt traders to close their positions using bearish bets because Dogecoin successfully breaks through the $0.21 resistance zone. To sustain an upward trend, buyers must push the price above $0.22. According to heatmap analysis, this resistance area displays a high concentration.
Dogecoin Price Technical Analysis and Market Outlook
According to technical analysis, the four-hour timeframe demonstrates a minimal uptrend correction. Proof indicates a consistent downward trend as the price remains underneath both EMA lines at 50 (red) and 100 (blue) periods. This establishes bearish market conditions. The current price increase exceeded its static moving averages, signaling either a new trend orientation or a temporary rebound possibility. The price experienced a temporary pullback while demonstrating support at the former resistance level, which matched $0.24.
Bullish momentum can potentially resume if the price holds its current level, driving DOGE toward the $0.26 resistance area. A price decline might occur if investors fail to support the current level at $0.22. The Awesome Oscillator has changed its position to green while displaying robust upward momentum to support the latest price escalation. The rising bullish attitude indicates an upward trend, but market strength depends on the buyer’s ability to preserve current gains.
The prices center around the moving averages in a bearish trend because the 50 EMA stays below the 100 EMA, which requires additional confirming signs for an uptrend by Dogecoin. The price forecast would strengthen as the 50 EMA moves above the 100 EMA to create a golden cross formation.
DOGE Price Expectations
The bulls’ following essential resistance levels are $0.26 and $0.28, which are the locations of previous market sell-offs. These levels could activate another upward movement if $0.22 and $0.21 are tested. DOGE currently faces a crucial turning point. A breakout from resistance will shape its upcoming trend, while a rejection will determine its next direction. Volume verification and renewed assessments of vital price points will determine the market’s next steps.
Final Thoughts
The article suggests a potential price rally for Dogecoin (DOGE) after reclaiming $0.22, driven by technical indicators like the TD Sequential buy signal and a $644M liquidation risk. While the market remains bearish, a rebound is possible if DOGE can break key resistance levels at $0.26 and $0.28. The price’s direction will depend on buyer support and key moving averages, with volume and a golden cross as key indicators for further upward momentum.