Is Dogecoin poised for a rally from $0.12 support?

• Dogecoin has experienced a 14.98% decline in the last seven days. 
• Despite the price decline, Doge enjoys low liquidation rates and increased whale activity

Dogecoin [DOGE] has experienced a sharp decline in the last month. Over the last 30 days, Doge has reported a 14.98% price decline and a 7.46% decline in the last seven days.

DOGE was trading at $0.1342, a 1% reduction in the last 24 hours, according to CoinMarketCap.

Source: Tradingview

According to AMBCrypto’s analysis, DOGE is set to stabilize around $0.123. In the short run, DOGE prices will likely consolidate between $0.12 and $0.15.

However, analysis indicates it’s likely to hit $0.17 to $0.2 in a bullish long-run scenario.

Thus, with higher sell-offs, DOGE is likely to test the $0.12 support level, while continued market activity would lead to a breakout above the $0.169 resistance level.

Source: Tradingview

Looking further, the RSI at 36 indicates the possibility of an upcoming bullish run. The indicator shows a potential reversal if the market holds and the RSI rises. Despite the existing bearish trend, future reversal is a possibility.

Equally, data from Coinglass indicates low liquidity levels in the last seven days. On 15th June, DOGE reported meager liquidation rates for both shorts and long positions, each reporting $61.6k and $139.2k, respectively.

Short positions report $105.7k at press time, while long positions have $1.07 million. Short and long positions liquidation shows that the market is consolidating at the current rates while enjoying stability.

Source: Coinglass

However, short-position investors are in more favorable conditions. This has resulted in increased accumulation for both sides and positive future price sentiment.

In detail, according to Santiment, Whales with over $5 million are increasingly accumulating their assets. At press time, over 52% of assets are accumulated by whales with over $5 million.

The accumulation by whales and reduced liquidation implies positive market sentiment.

Source: Santiment

DOGE market sentiment

DOGE has continually declined in the past seven days. However, investors remain optimistic, with increased accumulation by whales of over $5 million and reduced liquidation.

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If a negative market sentiment persists, DOGE will need to test the local weak support level of around $0.12.

However, if the selling pressure persists, the market will get a reversal and breakout off the resistance level of around $0.169.