Analysis
Dogecoin: Can DOGE hold THIS support as bulls lose the $0.37 zone?
Posted:
| Last updated: January 14th, 2025
Journalist
- 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.
Dogecoin [DOGE] was down by 9.7% in the 24 hours preceding press time, but its trading volume was up nearly 89%. This huge influx can be largely attributed to the selling that occurred the previous day.
With Bitcoin [BTC] once again struggling to reclaim $100k, Dogecoin’s short-term outlook is precarious. The $0.336 and $0.375 levels will be key over the next few days.
Dogecoin bulls unable to defend $0.37 zone
Source: DOGE/USDT on TradingView
In mid-November, the $0.35-$0.38 region was established as a support zone following a swift rally earlier that month. This support zone gave way in the second half of December, causing DOGE to fall to a local low of $0.262.
Nearly three weeks before the current date, the first few days of the year saw a bullish performance from DOGE. It broke out of a symmetrical triangle pattern (white) to reach $0.398 and reclaim the $0.36 zone as support, but it fell below this support level in the past 24 hours.
The next short-term support level is at $0.336, a lower timeframe consolidation zone before the impulse moves higher on Friday, January 3rd.
The Awesome Oscillator on the 6-hour chart shows weakening bullish momentum. The DMI also indicates a slowdown in the bullish trend, with the -DI (red) crossing above the +DI (green).
Temporary setback or further losses ahead?
Source: Coinglass
The liquidation heatmap of the past month showed that the $0.42 area was the strongest magnetic zone nearby. The $0.3 area was also interesting. Additional bearishness from Bitcoin could result in a Dogecoin drop toward the $0.3 liquidity pool.
Read Dogecoin’s [DOGE] Price Prediction 2025-26
These liquidity pockets are key support/resistance zones that could initiate a short-term price reversal. On the higher timeframes such as the daily, the market structure of DOGE was bullish, but the $0.37 region was an important and highly contested sector.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
