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DOGE Price Analysis: Dogecoin Sees $28 Million in Liquidations as Price Sheds 14%, Here Are Levels To Watch

Dogecoin
  • Dogecoin (DOGE) saw $28.14 million in liquidations over 24 hours
  • At the time of publication, DOGE was trading at $0.1407
  • The number of large transactions on the DOGE network reached a four-month high

Dogecoin (DOGE) saw $28.14 million in liquidations over 24 hours, according to data from CoinGlass as its price fell by nearly 15%. The majority of liquidations were seen by traders in long positions – or those betting on a move higher for DOGE. At the time of publication, DOGE was trading at $0.1407, almost erasing the prior day’s gains. The price of dogecoin popped on Monday afternoon following news that Twitter has accepted Elon Musk’s buyout deal. The meme cryptocurrency jumped as much as about 35% after the announcement that Twitter will be purchased by an entity owned by the Tesla CEO. The number of large transactions on the DOGE network with a value greater than $100,000 also reached a four-month high at 2,400 transactions. Yesterday, the volume of these transactions which acts as a proxy for institutional activity, soared to $2.59 billion.

Key Levels
Resistance Levels: $0.1550, $0.1500, $0.1450,
Support Levels: $0.1325, $0.1255, $0.1205

DOGE/USD Daily Chart: Ranging

DOGE/USD Daily Chart

DOGE’s brief slump found support over the $0.1383 level on the daily chart, indicating ongoing strong buying demand. As long as it continues above Apr. 25 low of $0.1225, the price might grind up towards the daily moving average (MA 200) holding onto the positive sentiment. As volatility rises, the moving average (MA 50) at $0.1350 remains the immediate support.

In the coming weeks, a bullish breakout might set off a bigger reversal. The recent daily analysis supports the activity, yet waning bullish momentum might delay the gain and lead to more consolidation. The major resistance level for DOGE is $0.1800, which might limit spikes and provide stronger barriers if it buys at the dip.

DOGE/USD 4-Hour Chart: Ranging

DOGE/USD 4-Hour Chart

Earlier, DOGE/USD began a strong rise against the bears from a low of $0.1225. DOGE spikes past the $0.1550 level on the 4-hour chart, taking through the $0.1700 medium-term resistance before retracing towards the $0.1400 zone. There is now a risk of breach of the short-term moving average (MA 50) around $0.1400 low. The key resistance level is still $0.1800.

A downside correction or consolidation would be expected at this point after the recent bullish run-up, though how severe any pullback would remain to be seen, as the short term relative strength index (RSI) is yet to show any convincing weakness, despite being at the midline 50, moving averages (MA 50 and MA 200) are maintaining a ranging outlook.

Image Credit: Shutterstock

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