Dogecoin Preparing for a Small Retest-Here’s Where it May Reach After Rebounding From $0.385
The post Dogecoin Preparing for a Small Retest-Here’s Where it May Reach After Rebounding From $0.385 appeared first on Coinpedia Fintech News
The last couple of weeks were extremely bullish for the markets as the star token, Bitcoin, led a steep rise close to $100K. This caused a momental shift in the popular altcoins like Dogecoin, which woke up from a prolonged consolidation and surged above their pivotal resistance. Ever since the bulls are displaying some weakness, the possibility of a bearish pull has emerged, which is expected to offer a good entry as the DOGE price rally has just started a strong bull run, siming to peak above $1 somewhere in the first few days of 2025.
The recent 200% jump helped Dogecoin to regain the top 7th spot in the crypto ranking, preventing it from flushing out of the top 10. A close observation suggests the bears are not completely active, suggesting the market sentiments still remain in favour of bulls. Presently, the DOGE price is consolidating along $0.42, but a small bearish wave is expected to drag the levels below $0.4, which could squeeze off some profits in the coming days. Meanwhile, it can be looked at as a good opportunity to enter as the target at the $1 milestone remains activated.
While the long-term trade suggests a pullback could be fast approaching, the short-term trade indicates a rebound could follow soon.
Looking at the daily chart of the DOGE price rally, it suggests the token is about to reach the edge of the bull flag. Therefore, the price is expected to remain consolidated within the pennant below $0.45. Meanwhile, the MACD displays some possibility of a pullback as the levels get prepared for bearish crossover with a drop in the buying volume. Besides, the OBV also displays a bearish divergence, substantiating the bearish claim.
Does this suggest the bears are outperforming the bulls? Even if they do, it could be short-lived as the DOGE price is about to demonstrate a catapult action and surge above $0.5 soon.
The liquidation heatmap of DOGE on Binance suggests strong support levels have formed around $0.397, where over $1.58 billion in longs have been accumulated. In case the bears are successful in dragging the levels below $0.4, a strong rebound could occur after hitting these levels. Meanwhile, no major short positions have been accumulated above $0.45, suggesting a move beyond the range is imminent as the market sentiments for the Dogecoin (DOGE) price rally remain bullish.
