Dogecoin’s price sees red, but $16.91M buying activity might say otherwise!
DOGE, despite obstacles, could make a major price swing.
- DOGE fell 4.97% despite a 20.57% monthly gain, facing rejection at a recurring resistance level.
- A $1.4M liquidation cluster sits above the current price, historically acting as a magnet for short-term moves.
Dogecoin [DOGE] took a price hit, trending toward the lower end, following a decline of 4.97%. This opposes the direction of its overall move over the past month, which saw a gain of 20.57%.
AMBCrypto looked into several market factors that could determine DOGE’s potential market trajectory, especially as sentiment takes different angles.
Strong resistance level ahead for the price
DOGE hit a critical resistance level that, on five prior occasions, triggered retracements. Only once did price hold above it.
Except for the third occasion, DOGE hasn’t recorded any major price decline—a possibility that might remain, as other metrics support a move upward.
Analysis of spot market trader activity showed that buying increased since the last time DOGE traded into the demand zone.
As of press time, traders recently acquired $16.91 million worth of DOGE, as indicated by the Exchange Netflow.
This Netflow not only confirmed the purchase, it also confirmed that these spot traders are buying for the long term, as they’ve moved their assets from exchanges to private wallets.
On top of that, DOGE’s Open Interest Weighted Funding Rate has continued to rise, now up 0.0047%.
The metric trading in the positive region confirmed that running contracts in the market are still mostly dominated by long traders.
With growing interest from both spot and futures traders, DOGE could regain its earlier upward trajectory.
Liquidation heatmap hints at DOGE’s move
In fact, DOGE’s Liquidation Heatmap shows an active cluster above the current price. The yellow zone reflects nearly $1.4 million in potential liquidations.
Historically, prices are drawn toward high liquidation levels such as this.
If this plays out, it could act as a major catalyst for an upward price trend, with the memecoin recording further gains.
