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As the liquidations in the crypto market rise to $1.6 billion over the past 24 hours, the meme coins are witnessing increased volatility. The biggest meme coin, Dogecoin, is down by 8.6% over the past 24 hours.
However, the DOGE price is back at a trading value of $0.1482 after creating a 24-hour low at $0.12984. With a significantly lower price rejection in the intraday candle, Dogecoin hints at a bullish recovery.
Will this recovery run in Dogecoin result in a price surge above the $0.20 mark? Let’s find out.
Dogecoin (DOGE) Price Analysis
In the daily chart, the Dogecoin price action reveals a bearish trend under the influence of a strong resistance trend line. With an evening star pattern created over the weekend, Dogecoin dropped by 11.67% on Sunday.
This marks a critical bearish turnaround from the 38.20% Fibonacci level and the local resistance trend line. The drop to the 24-hour low at $0.12984 registered the lowest Dogecoin price since October 26, due to a sudden surge in the supply pressure.
Furthermore, the 100- and 200-day EMA lines give a negative crossover. This completes the negative alignment of the 50-, 100-, and 200-day exponential moving average lines. Hence, the technical indicators trigger a sell signal for Dogecoin.
However, the lower price rejection in the intraday candle highlights strong bullish dominance at the 23.60% level at $0.13729. As the bullish momentum resurfaces for Dogecoin, the bulls anticipate the breakout of the 20-day EMA line at $0.1703.
This will increase the possibility of Dogecoin surpassing the 38.20% level with the trend line breakout.
Dogecoin Futures
Due to the massive price fluctuations, the derivatives market witnessed a major shakeout. As the Dogecoin traders witness a massive shakeout, the open interest drops by nearly 11% and stands at $1.35 billion.
Furthermore, the gradual increase in bearish sentiments flips the funding rate into negative territory. Currently, the OI-weighted funding rate stands at 0.0003%.
This marks a steep correction from the 0.0087% peak. Notably, the gradual surge in the number of short positions has dropped the long-to-short ratio to 0.9643.
DOGE Price Targets
From an optimistic viewpoint, the recovery run in Dogecoin could challenge the 50% Fibonacci level near the $0.20 psychological mark. On the flip side, a bearish extension closing below the 23.60% Fibonacci level will undermine any further possibility of a bullish recovery.
In such a scenario, the Dogecoin price could likely crash-test the $0.10 psychological support.