- Dogecoin fell below a hotly contested region once more after recent market-wide losses.
- The liquidation heatmap highlighted two important levels that could decide the next longer-term trend.
24-hour periods prior to this report, Dogecoin [DOGE] saw a 9.7% decrease in value, but remarkably, its trading activity increased by approximately 89%. This significant surge may primarily be due to the high volume of sales that took place the day before.
As Bitcoin (BTC) battles to surpass the $100k mark once more, Dogecoin’s immediate future seems uncertain. The price points at $0.336 and $0.375 could hold significant importance in the coming days.
Dogecoin bulls unable to defend $0.37 zone
Around mid-November, the range between $0.35 and $0.38 became a strong area where the price held steady following a quick surge earlier in the month. However, this supportive area weakened in the latter half of December, resulting in DOGE dropping to a temporary low of $0.262.
Approximately three weeks ago, the early days of the year witnessed Dogecoin (DOGE) displaying a bullish trend. It broke free from a symmetrical triangle pattern (white), peaking at $0.398 and reestablishing the $0.36 area as a support zone. However, within the last 24 hours, it has dropped below this supportive level.
On Friday, January 3rd, we anticipate further price increase after a brief period of consolidation around the $0.336 short-term support level in lower timeframes.
On the 6-hour chart, the Awesome Oscillator signals a decrease in the strength of the uptrend. Similarly, the DMI suggests a potential shift in the bullish trend, as the negative directional indicator (represented by red) is now moving above the positive directional indicator (depicted by green).
Temporary setback or further losses ahead?
In the past month’s heatmap analysis, it was found that the region around $0.42 exhibited the most magnetic force as a significant zone for potential trades regarding Bitcoin. The area near $0.3 also showed some intrigue. If Bitcoin experiences further bearish trends, there could be a possible drop in Dogecoin prices towards the liquidity pool at $0.3.
Read Dogecoin’s [DOGE] Price Prediction 2025-26
Essential areas where liquidity accumulates act as potential triggers for a quick change in Dogecoin’s price direction, known as support or resistance levels. On larger timeframes like daily charts, Dogecoin’s market trend appears bullish. However, the $0.37 area stands out as a vital and fiercely disputed region.
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2025-01-08 16:07