Dogecoin price prediction – Assessing if a surge to $0.50 is possible now
- Dogecoin’s promoting stress was weak and the $0.35 demand zone won’t be breached quickly
- The consolidation round $0.35-$0.45 might give DOGE bulls energy to drive the following rally within the coming weeks
Dogecoin [DOGE] shaped a double backside sample on the worth chart, one which promised a powerful rally was brewing. Nevertheless, the technical indicators and the liquidation ranges confirmed {that a} short-term vary formation was potential.
Which method will the main memecoin run in?
Dogecoin defends native demand zone
Supply: DOGE/USDT on TradingView
A set of Fibonacci retracement and extension ranges had been plotted primarily based on the rally made in November. The $0.143-level, the excessive from July, was used because it had been flipped to assist. Under the native demand zone at $0.36-$0.38, the $0.272 and $0.215 ranges had been highlighted as key helps.
As issues stand, it could be unlikely that DOGE would fall to those ranges anytime quickly. The RSI fell to 53 to mirror muted bullish momentum on the day by day timeframe. And but, it stayed above impartial 50 to point out that patrons nonetheless had the higher hand.
The OBV was above the native highs that DOGE shaped on its method up in November. If the OBV falls beneath the marked ranges, a bearish bias might be adopted. On the time of writing, the proof pointed in the direction of comparatively weak promoting stress.
Liquidation heatmap confirmed momentum is prone to stay impartial
The three-month look-back interval revealed a cluster of liquidation ranges at $0.485 and $0.355. The latter coincided with the native demand zone and may very well be revisited within the coming days or perhaps weeks.
Additional south, a band of liquidity was build up at $0.34. These liquidity swimming pools can appeal to costs south.
Zooming in on the liquidation heatmap, we will see that the $0.395 and $0.425 ranges have noticeably excessive liquidity. Given the dearth of momentum on the day by day chart and the stalemate between patrons and sellers, it’s potential that Dogecoin types a short-term vary.
Sensible or not, right here’s DOGE’s market cap in BTC’s phrases
A transfer past $0.43 within the coming days could be an early clue that the $0.5-level could be retested quickly. In the meantime, a fall beneath $0.395 and $0.355 might set DOGE up for a deep, extended correction.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
