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Dogecoin Price Prediction: DOGE on the cusp of 25% liquidity run

  • Dogecoin price has been in a confused state as it rallied 22% over the past 22 days.
  • DOGE market makers are likely to push to collect liquidity resting above $0.343.
  • A decisive daily close below $0.196 will invalidate the short-term bullish thesis.

Dogecoin price has been on a slow uptrend for the past month with some volatile moves. However, DOGE seems primed for a quick run-up into the liquidity pool before establishing a firm directional bias.

Dogecoin price primed for a higher high

Dogecoin price has bounced off the $0.226 support level twice over the past month and has risen roughly 22% to where it currently stands. While there was a massive spike in volatility on October 28, things seem to have returned to normal.

Dogecoin price is stuck between the $0.226 and $0.343 barriers and anticipates a move above these levels. The altcoin markets look better than Bitcoin, so investors can expect DOGE to trigger a quick run-up before it retests a support level.

Moreover, the market makers are also likely to prefer a run above $0.343 to collect liquidity resting in the form of buy stops. Therefore, market participants can expect a 25% ascent in the near future for Dogecoin price. 

After this run-up, if DOGE produces a decisive daily close above $0.343, the chances of continuing this uptrend will increase massively. However, a failure to do so will result in a downswing that retests $.226.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

On the other hand, if the Dogecoin price fails to climb higher, it will head lower to retest the $0.226 support level. While it is likely that DOGE might wick below this barrier, a daily close above it will indicate the bulls’ will to push the meme coin higher.

However, a daily close below $0.196 will invalidate the bullish thesis. In such a case, Dogecoin price will head lower and retest $0.16, where it will restart the upswing to collect liquidity above $0.343.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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