Will Dogecoin stall in a multi-week range despite DOGE’s 15% rally?

Dogecoin (DOGE) managed to maintain the $0.088 support level despite the heavy selling pressure memecoin has faced recently. Bitcoin (BTC)’s bounce from $67,000 is likely to support memecoin market sentiment.

AMBCrypto reported increased social media engagement for DOGE and other memecoins. This has come with a high liquidation imbalance and recently renewed speculative interest.

Evaluation of Dogecoin rise

Despite the 15% recovery in five days, the long-term trend remained bearish. revival $0.088 support levelWhat was critical last month meant: DOGE It may rise above $0.1 once again.

The Moving Averages have continued their downtrend and may act as resistance to DOGE’s rise. Volume indicators also underlined seller dominance.

Despite the jump, the A/D indicator continued its downward trend. At the time of writing, the CMF was at -0.1, showing significant capital outflows during this time period, further reinforcing the long-term bearish trend.

Meanwhile, the DMI was showing a downward trend, but this situation became more complicated towards the end of February. For the last two weeks the indicator did not give a clear reading. This gave little hope that the trend would change.

Local highs will push prices higher

The 1-month liquidation heat map pointed out that the $0.10-0.11 zone has a series of short liquidations that could push Dogecoin prices higher. These short liquidations have increased over the past two weeks as DOGE prices hit lower levels during the downtrend.

A liquidity move towards $0.11 may be approaching. However, it will not be able to break the long-term downtrend. To do this, the rally must extend above $0.127.

At the time of writing, the local low of $0.1 was about to be overcome. The high trade volume shows that short-term demand is behind the rise. This opened up the possibility of a range formation between $0.088 and $0.105.

Final Summary

• Although short-term DOGE momentum is bullish, investors need to be wary of a long-term downtrend.
• There has been a series of short liquidations in the $0.105-$0.11 region that could be swept away before the next downtrend reversal.

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.