Dogecoin shows concerning technical signals after dropping by 5.2% in 24 hours. Analysts highlight liquidity accumulation near $0.17, which may trigger a significant correction. Bearish traders now target support levels at $0.15 and $0.13.
Technical analysis of Dogecoin (DOGE) reveals a convergence of several bearish indicators that increase the probability of an imminent correction. The price structure shows a progressive deterioration of the bullish momentum, with increasingly lower highs and growing selling pressure.
The $0.17 zone currently constitutes a focal point for market makers. A significant concentration of liquidity has formed around this level, creating a price attraction pole. This phenomenon is frequently observed before sharp movements, with large players seeking to capture these liquidity pockets before initiating a more pronounced directional movement.
Trading volumes also show signs of relative weakness. The diminishing interest from buyers faced with sustained selling pressure suggests an unfavorable short-term imbalance. Momentum indicators confirm this reading, with bearish divergences appearing across multiple timeframes.
If the Dogecoin (DOGE) correction materializes, traders should monitor two key zones: $0.15 as the first major support, an important psychological and technical level, then $0.13 if broken, which would represent approximately a 20% decline from recent highs. These levels correspond to historical bounce points often associated with phases of consolidation before bullish resumption.
For experienced investors, these pullbacks offer strategic accumulation opportunities. A progressive approach with staggered entries effectively manages risk while capitalizing on potential reversals. Identifying liquidity and technical support zones remains essential to optimize entry points.
The Dogecoin market remains highly volatile, influenced by investor psychology and its correlation with Bitcoin. On-chain flows indicate an increase in transfers to exchanges, a potential sign of impending sales. This context, combined with bearish technical signals, suggests a corrective phase in the short term before a possible new bullish impulse.
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