Dogecoin approaches the $0.18 support level as the meme coin market drops below $60 billion. With Long liquidations rising sharply, is a retest of $0.14 next?
As Bitcoin slips below $105,000, meme coins are trending downward. The segment’s total market cap has fallen below $60 billion, with the leading meme coin, Dogecoin, down nearly 4% in the past 24 hours. Under these conditions, is Dogecoin likely to retest the crucial $0.14 support level?
Dogecoin Analysis
On the daily chart, Dogecoin’s price action reveals a bullish failure to break through the $0.25 supply zone. This has led to a pullback below the 200-day EMA and the 23.60% Fibonacci retracement level near $0.21.
Currently, Dogecoin is finding critical support near the $0.18 supply zone. However, the meme coin dropped 2.6% on Wednesday, hinting at the potential for a deeper correction.
Based on price action, a drop below the $0.18 support zone would invalidate the possibility of Dogecoin forming a cup-and-handle pattern with a neckline at $0.25. In such a scenario, the decline will likely extend to the $0.14 support level.
Supporting the bearish thesis, the daily RSI has fallen from the overbought zone to below the midpoint, signaling a shift in momentum to the downside. Any potential reversal in Dogecoin may face resistance near the $0.21 supply zone
Long Liquidations in DOGE Cross $5 Million
With the recent pullback, the Dogecoin derivatives market reflects a massive wipeout of bullish positions. Over the past 24 hours, the long liquidations account for $5.19 million. Meanwhile, short liquidations were only $416k. This reflects more than ten times the number of bullish positions wiped out in comparison to the counterpart.
DOGE Derivatives
Additionally, open interest in DOGE is down by 1.42% to $2.07 billion, suggesting waning trader participation. However, in the short term, sentiments recover as the OI-weighted funding rate surges to 0.0080% after dipping to 0.0020% within the past 24 hours.
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