Dogecoin Defends $0.1 Support Amid $2.93M Futures Liquidation Pressure

• Dogecoin is striving to maintain its crucial support at $0.1 amidst mounting liquidation pressures in futures markets.
• Recent data indicates that long liquidations in Dogecoin futures have reached $2.93 million within 24 hours.
• Approximately 77.8k addresses that acquired 30.85B Dogecoin around the $0.1 mark are positioned to defend against any prolonged sell-off down to $0.77.

Dogecoin battles liquidation pressures while steadfastly clinging to the $0.1 support; pivotal movements expected as market dynamics evolve.

Surging Liquidations Put Dogecoin’s $0.1 Support to the Test

In a market marred by uncertainty, Dogecoin faces considerable selling pressure with futures exposing vulnerabilities. According to Coinglass, $2.93 million in long Dogecoin futures were liquidated in the past day, exacerbating fears of a further price drop. The immediate support at $0.1 becomes all the more critical as the specter of a decline to $0.77 looms larger.

Market Sentiment and Technical Indicators

Dogecoin’s price trajectory has been hampered by persistent bearish sentiment in the broader crypto market. The underperformance can be linked to factors such as the market’s reaction to the Federal Reserve’s dovish policies, rising recession fears in the US, and intensifying geopolitical tensions. Dogecoin is currently trading below crucial 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), making a bullish reversal challenging.

Addressing Future Price Movements

Meanwhile, signs of a potential price rally persist. A buy signal from the Moving Average Convergence Divergence (MACD) indicator suggests an upcoming bullish momentum. However, traders are advised to wait for Dogecoin prices to establish a foothold above the two-month-long ascending trend line before making significant buy orders. The anticipated target price levels are $0.12 and eventually $0.13, provided the price breaks past the first resistance levels effectively.

Investor Commitment and Potential for Rebound

Dogecoin’s resilience is largely supported by a dedicated investor base. Data from IntoTheBlock shows that roughly 41,000 addresses purchased 30.85 billion DOGE at price levels between $0.1078 and $0.1094. This robust demand underpins the cryptocurrency’s current support level, indicating potential for a price uplift. If buying interest intensifies, a rally pushing Dogecoin prices beyond $0.12 and possibly up to $0.175 could ensue, supported by decreasing resistance as identified by the IOMAP model.

Conclusion

The immediate outlook for Dogecoin remains precarious as it grapples with significant liquidation pressures and a weak technical structure. However, steadfast support from the investor community around the $0.1 level provides a buffer against drastic declines. While cautious traders may wait for clearer buy signals before diving in, the groundwork for a potential price recovery appears to be forming. Close monitoring of market indicators and ongoing developments will be crucial for investors aiming to capitalize on any bullish trends.

The post Dogecoin Defends $0.1 Support Amid $2.93M Futures Liquidation Pressure appeared first on COINOTAG NEWS.