Is Dogecoin poised for a rally from $0.12 support?

Dogecoin Market Analysis

Dogecoin (DOGE) has experienced a significant decline in the last month, with a 14.98% price drop and a 7.46% decrease in the past week. Currently trading at $0.1342, DOGE has seen a 1% reduction in the last 24 hours.

Despite the bearish trend, analysis suggests that DOGE may stabilize around $0.123 in the short term. Price consolidation is expected to occur within a range of $0.12 to $0.15. However, a bullish long-term scenario indicates the potential for DOGE to reach $0.17 to $0.2.

The Relative Strength Index (RSI) at 36 suggests the possibility of an upcoming bullish run. If the market holds and the RSI rises, a potential reversal may occur.

Data from Coinglass indicates low liquidity levels in the past week. Despite meager liquidation rates for shorts and long positions, short-position investors are currently in more favorable conditions.

Whale accumulation is evident, with over 52% of assets held by whales with over $5 million. This accumulation and reduced liquidation imply positive market sentiment.

While the current market sentiment remains negative, investors remain optimistic. If negative sentiment persists, DOGE may test the support level of $0.12. However, if selling pressure continues, the market may reverse and break out above the resistance level of $0.169.