Dogecoin approaches the $0.18 support level as the meme coin market drops below $60 billion. With Long liquidations rising sharply, is a retest of $0.14 next?
As Bitcoin slips below $105,000, meme coins are trending downward. The segment’s total market cap has fallen below $60 billion, with the leading meme coin, Dogecoin, down nearly 4% in the past 24 hours. Under these conditions, is Dogecoin likely to retest the crucial $0.14 support level?
Dogecoin Analysis
On the daily chart, Dogecoin’s price action reveals a bullish failure to break through the $0.25 supply zone. This has led to a pullback below the 200-day EMA and the 23.60% Fibonacci retracement level near $0.21.
Currently, Dogecoin is finding critical support near the $0.18 supply zone. However, the meme coin dropped 2.6% on Wednesday, hinting at the potential for a deeper correction.
Based on price action, a drop below the $0.18 support zone would invalidate the possibility of Dogecoin forming a cup-and-handle pattern with a neckline at $0.25. In such a scenario, the decline will likely extend to the $0.14 support level.
Supporting the bearish thesis, the daily RSI has fallen from the overbought zone to below the midpoint, signaling a shift in momentum to the downside. Any potential reversal in Dogecoin may face resistance near the $0.21 supply zone
Long Liquidations in DOGE Cross $5 Million
With the recent pullback, the Dogecoin derivatives market reflects a massive wipeout of bullish positions. Over the past 24 hours, the long liquidations account for $5.19 million. Meanwhile, short liquidations were only $416k. This reflects more than ten times the number of bullish positions wiped out in comparison to the counterpart.
Additionally, open interest in DOGE is down by 1.42% to $2.07 billion, suggesting waning trader participation. However, in the short term, sentiments recover as the OI-weighted funding rate surges to 0.0080% after dipping to 0.0020% within the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
