Dogecoin Price Rally At Stake Unless These 2 Conditions Are Met

Dogecoin Price Correction and Market Movers

Dogecoin (DOGE) experienced a price adjustment last week, leading to a spike in liquidations for long positions ($1.48 million) compared to short positions ($55.85k). This downtrend suggests DOGE has returned to its Friday levels, increasing the likelihood of further correction.

Resistance and Whale Accumulation

A strong seller congestion zone exists between $0.1101 and $0.1134, as identified by IntoTheBlock's IOMAP model. This may hinder the uptrend, potentially forcing Dogecoin to consolidate above $0.1 or extend its decline to $0.08.

Meanwhile, whale accumulation remains strong. Holders with 1-10 million DOGE now account for 7.31% of the total supply, while those with 10-100 million have increased their holdings to 12.85%. This indicates long-term bullish sentiment among investors.

Open Interest and RSI

Dogecoin's open interest (OI) in futures has declined by 4% to $500 million, while volume has risen to $804 million. This suggests a potential shift in sentiment or uncertainty about Dogecoin's direction.

The Relative Strength Index (RSI) is currently in neutral territory (45). If it falls further towards the oversold region, DOGE may decline below $0.1.

Trend Breakout and Price Prediction

Dogecoin is currently below the 50-day EMA at $0.1127. Sellers have the advantage, but a trend reversal is possible if support at $0.1 holds.

The falling wedge pattern in the daily range suggests a potential 71.5% breakout to $0.18 if the wedge resistance is breached. This breakout would signal a bullish reversal.