Can Dogecoin Price Survive After $3.8M Liquidations?

Key Insights:

• DOGE Recovers as price rebounds 4.1% after $3.8M in liquidations shook the market.
• 600% upside in play as analyst sees major rally ahead if Dogecoin price holds key support.
• Bullish chart displays a double bottom pattern hints at breakout toward $0.48.

Dogecoin price sported a bullish surge earlier in the week, gaining 16.4%. Today, the price of DOGE has increased by 4.1% to trade at $0.1809 on a 10% drop in trading volume to $1.5 billion. On April 24, Dogecoin faced $3.8M in liquidations, causing uncertainty among market participants. Can DOGE hold the line, or is the meme coin in for more chaos?

Dogecoin Price Recovers After $3.8M Liquidations

The crypto market has been electric this week, and Dogecoin hasn’t been spared from the volatility. Data from Coinglass shows a massive $3.8M in DOGE positions got liquidated on April 24, while the entire market struggled to rise higher on account of Trump coin surging. 96% of those liquidations were long positions that got wiped out as the price of DOGE came tumbling down.

When the market sees this kind of action, it can either lead to a deeper dip or a quick bounce if the bulls step in to defend key levels.

True to this, after hitting a low of $0.1697, DOGE price is up 4.1% to its current price today. Price liquidations like this often signal high volatility, and for DOGE, it’s a sign that traders were either over-leveraged or panicking hard.

Analyst: “Millionaires Will Be Made” By DOGE

Prominent analyst Trader Tardigrade has predicted that Dogecoin’s recent price action shows signs of a 600% potential bullish reversal if it can break and hold above $0.1926.

This level has been a battleground for bulls and bears, and if it holds, DOGE could make a run for higher ground. Alan forecasted that Dogecoin price would likely jump 600% to $0.93, seeing as it soared 200% and 400% in its previous major rallies.

However, Alan also warned that if this support fails, DOGE might slide down to $0.13909.

What’s more, Bitguru, another renowned crypto analyst, also noted that Dogecoin’s trading volume spiked by 40% this week, hitting $2.6B in a single day. That’s a lot of action for DOGE, and high volume often means big players are stepping in. Could this be a sign of accumulation before a breakout?

DOGE Chart Analysis: Double Bottom or Double Trouble?

Right off the bat, the 1-day DOGE/USD chart, the DOGE price appears to have been consolidating after a nasty drop from its high of $0.4834 late last year—a 62% correction.

The chart shows a textbook double bottom pattern forming around the $0.1543 level, which is marked as a key support. A double bottom is a bullish reversal pattern that looks like a “W” and often signals that the price has found a floor and is ready to moon.

Dogecoin price action tested this level twice in March and April, and both times, the bulls held their ground against bears. Currently, DOGE price is headed to test the $0.1962 resistance, which also forms the neckline of the double bottom.

If this pattern plays out, DOGE price could push back toward the resistance zone around $0.2492 and potentially challenge the next big level at $0.48, which also marks the previous high.

If price faces rejection at $0.1926 and bears take control, they could push the price back to $0.1543 or lower to $0.1298.

The relative strength index (RSI) at 59.01 looks neutral-to-bullish, so no major overbought or oversold signals yet. The moving average convergence/divergence (MACD) indicator also remains bullish, meaning more upside pressure is still in play for the bulls.

Can Dogecoin Price Score 38% Amid Liquidations?

Despite the $3.8M liquidation event on April 24, DOGE traders were not spooked. Data from Coinalyze shows Open Interest increased 5% in the last 24 hours alongside price. When this happens, it signals that traders are entering long positions.

The double bottom on the chart gives some hope for a bullish reversa. But the overhead resistance levels are casting some doubt on that idea. If DOGE can break above the $0.1926 with strong volume. It might see a push toward $0.2492 or even $0.4834 in the coming weeks. But if the bears win and that $0.1926 resistance proves too strong. Dogecoin price could be looking at a trip down to $0.1277 or lower.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.