Over the past three days, the cryptocurrency market has faced a steep decline, but Dogecoin (DOGE) has demonstrated resilience, holding strong at the critical $0.20 psychological support level. This stability, despite the broader market turmoil, hints at a potential recovery for the leading meme coin.
Meme Coins Show Signs of Recovery
Over the last 24 hours, other prominent meme coins have seen modest recoveries, with Shiba Inu (SHIB) and Pepe (PEPE) posting gains of 3.03% and 2.78%, respectively. Additionally, DogWifHat (WIF) and ai16z have recorded double-digit gains, signaling renewed interest in the meme coin sector. Given Dogecoin’s dominance in this space, its current positioning could be pivotal in determining whether a broader meme coin resurgence is imminent.
Currently, Dogecoin trades at $0.2092, with a market capitalization of $30.91 billion. This accounts for more than half of the entire meme coin segment’s $58.41 billion market cap. If Dogecoin manages a strong rebound, it could ignite bullish momentum across the meme coin market.
Dogecoin Liquidation Spikes to $10M
Amid heightened volatility, Dogecoin liquidations have surged to $10.01 million in the past 24 hours. Long liquidations stand at $7.4 million, while short liquidations are limited to $2.61 million. The funding rate has climbed to 0.0096%, highlighting a notable premium for bullish traders maintaining long positions.
Despite a long-to-short ratio of 0.9704, indicating slightly more bearish positions, traders on major exchanges remain optimistic. Binance reports a long-to-short ratio of 3.755, while OKEx sits at 5.14, suggesting bullish sentiment among traders.
Can DOGE Confirm a Double-Bottom Reversal?
Dogecoin’s price action has formed a double-bottom pattern, with a neckline at $0.2139. Over the past 12 hours, DOGE has printed three consecutive bullish candles, surging by 5.27%. A breakout above this level could push Dogecoin toward the 50-EMA at $0.2294, potentially marking the beginning of a bullish rally.
Conversely, a break below key support at $0.1953 could open the door for further declines toward the $0.15 mark. Traders should closely watch the $0.2139 level for confirmation of a breakout in either direction.
Also Read: Dogecoin Price Struggles: Network Activity Drops 95%, But Is a 2,270% Rally Ahead?
As Dogecoin navigates this critical juncture, its ability to sustain momentum above $0.20 could set the stage for the next major move in the meme coin market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
