Dogecoin remains strong despite massive liquidation
In the past fortnight, Bitcoin soared to a remarkable $71k before experiencing a sharp drop to $64k. This shift instigated a period of heightened instability across the cryptocurrency landscape, with alternative coins bearing the brunt of the turbulence.
Similarly, Dogecoin, the foremost meme coin, has also felt the sting of these tumultuous market dynamics.
Over the recent week, DOGE's value has seen a 8.61% downtrend, with a slight 0.15% decline in the past day. According to CoinMarketCity data, its trading activity also diminished by 31.99% to a volume of $323M, albeit with a marginal 0.20% market cap uptick in the same time frame.
Such market conditions have spurred a variety of conjectures from top cryptocurrency experts. Despite the sustained fluctuations, there's an overarching sentiment of positivity regarding DOGE’s prospective trajectory.
Significant selling pressure was observed on the 18th and 19th of June, when DOGE saw 44M and 18M in long positions being sold off, as per Coinglass reports.
This notable activity was highlighted by @sinceredoge on X, who commented that DOGE witnessed a considerable sell-off, with $60 million in long positions being offloaded.
Yet, amidst the sell-off frenzy, @sinceredoge maintained a positive outlook, stating that plenty of factors still favor a bullish stance on Dogecoin. Predictions by some experts place its potential peak at $0.52 by 2024.
This analysis leaned on Doge’s past pricing behavior, suggesting that after dipping into the oversold territory, Doge typically rallies into a robust uptrend.
These forecasts hint at a potential bullish rally for Doge soon, signaling an opportune moment for investors.
Key indicators and metrics unveil a possible shift in pattern.
Despite a prevailing bearish pattern, signs of an imminent pattern reversal are apparent. For example, an RSI of 33 coupled with an RSI-based MA of 35.
In the latest two-day period, the RSI showcased an upward trajectory with prospects of surpassing the RSI-based MA. Its position near the oversold domain hints at a reversal due to incoming buying pressure.
As of the latest update, the RSI was nearing its MA, showing signs of a bullish momentum.
Moreover, the lower threshold of the Bollinger Bands indicates an end to the downtrend and the beginning of a potential uptrend, presenting a favorable scenario for investors.
DOGE has been consolidating since the 19th of June, with prices stabilizing around $0.124 over the past five days.
With prices hovering near the daily MA, an uplifting market event could lead to increased demand, thereby propelling prices higher.
Coinglass data shows a decline in the liquidation of long positions in the last three days.
Post the $18M liquidation on the 19th of June, whale activities have decreased significantly to $9.26k.
This decrease in liquidations is seen as a positive sign, indicating that long positions are staying open, with room for new short positions to be established.
