Dogecoin remains strong despite massive liquidation: Here’s why

Dogecoin Price Analysis: Market Sentiment Bullish, Indicators Show Potential Reversal

Dogecoin’s market sentiment remains positive, with analysts predicting a bullish run despite increased crypto volatility. The meme-coin has experienced significant liquidation in recent weeks.

Market Analysis

The crypto market has been highly volatile since Bitcoin [BTC] reached $71k and then plunged to $64k. Altcoins, including Dogecoin [DOGE], have been heavily impacted.

In the past seven days, DOGE has declined by 8.61%, with a 0.15% decline in the last 24 hours. Trading volume has decreased by 31.99% to $323 million, while market cap has increased by 0.20%.

Analyst Predictions

Despite the market volatility, analysts are optimistic about DOGE’s future. On June 18th and 19th, DOGE experienced massive liquidations, with 44M and 18M long positions liquidated, according to Coinglass.

@sinceredoge noted that $60 million worth of long positions were liquidated, but remained bullish, predicting that Dogecoin could reach $0.52 by 2024.

@Trader Tardigrade pointed out that in October 2023, when Doge was under $0.06, it grew to $0.22, representing over 300% growth.

Technical Analysis

Technical indicators suggest a potential reversal pattern for Dogecoin. The Relative Strength Index (RSI) is at 33, indicating an oversold zone. The RSI trend is up, with the possibility of crossing its MA of 35.

The lower Bollinger band shows that prices are above it, indicating the end of a downtrend and a possible reversal to the uptrend.

Whale Activity

Since the 19th of June, DOGE has been in a consolidation phase, with prices consolidating around $0.124. Long position liquidations have declined in the past three days, indicating reduced whale activity.

Whales with more than $5 million have increased their total supply, showing trust in future market shifts.

Conclusion

If positive market sentiment continues and DOGE holds the support level around $0.123, it will test the resistance level near $0.152. A breakout at this level could push DOGE towards $0.172. However, if the support level fails, DOGE may decline to $0.1135.