thenewscrypto.com
- Dogecoin’s price rose by 11% in the past day, reaching $0.163, leading to short liquidations worth nearly $7 million.
- The Global In/Out of the Money (GIOM) indicator shows that 7.87 billion DOGE were bought between $0.16 and $0.18.
- Dogecoin’s price has been moving within an ascending triangle pattern, and a breakout above the $0.16 resistance could lead to a 22% rally.
Dogecoin (DOGE), the popular meme coin, is poised for potential gains as the recent price increase has triggered a recovery in the market. The short liquidations observed over the past 24 hours have historically been followed by a rise in price, which could also be the case this time around.
Will Dogecoin Bears Step Back?
Dogecoin’s price surged by 11% in the past day, in line with the broader crypto market rally, bringing the meme coin to trade at $0.163. This price action led to traders who were betting on a price decline losing their money, as evidenced by the short liquidations worth nearly $7 million.
This marks the largest single-day short liquidation in more than two months. Historically, such significant liquidations have been followed by price increases in the subsequent days, and the same outcome is anticipated in the current scenario. The liquidation may also result in bears backing off as investors await a potential rally.
Investors’ optimism is further fueled by the prospect of $1.28 billion worth of profits, as indicated by the Global In/Out of the Money (GIOM) indicator. According to the data, approximately 7.87 billion DOGE were purchased between $0.16 and $0.18.
This supply could soon turn profitable, as Dogecoin’s price is exhibiting bullish signs. However, for this to occur, DOGE would need to breach the $0.16 resistance level. Given the proximity of DOGE holders to realizing such substantial profits, they will likely act accordingly until the altcoin reaches $0.18.
DOGE Price Prediction: Where Will the Rise Stop?
Over the past month, Dogecoin’s price has been moving within an ascending triangle pattern. This bullish continuation pattern is characterized by a horizontal resistance line and an upward-sloping trendline, indicating that buyers are gradually gaining strength, often leading to a breakout above the resistance level.
At the time of writing, DOGE is breaking out of this pattern, despite declining volumes. This crucial price point has been identified as a target based on the pattern and also serves as a key psychological support level.
A more practical outcome would be Dogecoin’s price breaching $0.18, which would make the aforementioned supply profitable.
On the other hand, failure to breach the $0.16 resistance could lead to a fallback into the pattern. This would turn the breakout into a fakeout, and further decline could send DOGE to $0.15 or lower, invalidating the bullish thesis.