Dogecoin price is set and ready for a run up, but there’s a catch

Dogecoin (DOGE) price is leading the meme coin sector crash on Tuesday as the broader cryptocurrency market succumbs to the weakness seen in the Bitcoin (BTC) price.

Also Read: Meme coins suffer huge decline as Bitcoin crashes

Dogecoin price primed for a recovery

Dogecoin price dropped nearly 11% on Tuesday, liquidating almost $11 million in long DOGE positions against about $3 million worth of shorts. The crash was instigated by the plummeting BTC price.

The dump could be a blessing in disguise provided the $0.1823 support holds. This is contingent on whether Bitcoin price bottoms out above $64,000. If it does, markets could recover, with meme coin madness likely to return.

However, if the $0.1823 support breaks, Dogecoin price could drop to find the next support around $0.1525. In a dire case, the dog-themed meme coin could test the $0.1337 base, which is a critical level for DOGE price.

There is also a chance that the bulls could defend the $0.1867 support and use it as the jumping-off point to stage a recovery rally. A candlestick close above $0.2048 on the daily time frame would invalidate the short-term bearish supposition.

DOGE/USDT 1-day chart

According to IntoTheBlock’s Global In/Out of the Money (GIOM) indicator, the next cluster of support levels stretch from $0.0896 to $0.1337. 

The significance of the $0.1337 support comes as it lies within the aforementioned range where nearly $761,430 addresses currently hold approximately 26.50 billion DOGE tokens purchased at an average price of $0.1017.

Any effort to drive Dogecoin price lower would be countered by buying pressure from these many addresses as they look to grow their holdings.

DOGE GIOM

On the other hand, if Dogecoin price drops below the critical range, it could provoke more selling orders, likely as strong as to send DOGE to the range low at $0.0741.