Dogecoin (DOGE): Stabilization or a timely price recovery?
The daily chart clearly shows that DOGE remains true to its overall uptrend despite the recent sell-off. No deeper lows have been formed on the longer time frame; instead, the price continues to confirm a pattern of higher highs. This suggests that the fundamental market structure remains intact.
The indicators paint a mixed picture. The MACD (Moving Average Convergence Divergence) remains predominantly in negative territory, indicating a prolonged period of weakness in the short term. At the same time, the RSI (Relative Strength Index) is moving close to oversold territory, suggesting possible seller exhaustion and potentially opening up room for a recovery in the medium term. A look at the liquidation levels shows that most of the liquidity on the downside has already been absorbed. There are now increasing liquidity pools above the current price, which could act as a magnet in the event of an uptrend.
However, the dependence on Bitcoin remains crucial. If BTC shows strength, DOGE should also have the potential to reach the liquidity zones above the price and further confirm the structure.
4-hour chart showing first signs of Dogecoin stabilization
The 4-hour chart suggests that DOGE may have found a bottom near the 800 EMA. The price is showing signs of respecting this area as support, which could favor a short-term stabilization. This will be particularly relevant if the price moves toward the 200 EMA and the 50 EMA. This will determine whether DOGE can overcome these resistances and thus unlock further upside potential, or whether a rejection at these moving averages will once again limit the recovery attempt.
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The indicators also point to a possible short-term trend reversal. The MACD signals fading negative momentum, while the RSI is beginning to move upward from the heavily oversold zone. At the same time, the liquidation levels (top left in the chart below) provide a clear picture. Almost all long positions have been taken out within the current price range. At the same time, a short delta of around $3 billion is evident, increasing the likelihood of short squeezes should the price confirm initial upward momentum.
This leaves DOGE in an exciting position between stabilization and the possibility of a recovery on both the daily and 4-hour charts, with Bitcoin's strength being considered a key factor.
About the author
Bastian Keller (Bitbull) has been operating independently in the forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, particularly on his YouTube channel “Bitbull Trading,” which has more than 125,000 subscribers. Bitbull has also launched the TradeMania platform, which is designed to make it easier for beginners to get started in crypto trading.
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