Dogecoin has rebounded 15% in five days to defend the critical $0.088 support level. The recovery follows Bitcoin’s bounce from $67,000 and coincides with heightened social engagement and a high liquidation imbalance for memecoins. While the long-term trend remains bearish, a cluster of short liquidations near $0.11 could pull prices higher in the short term.
Dogecoin successfully held the $0.088 support despite recent heavy selling pressure. This stabilization likely occurred alongside a broader market sentiment boost from Bitcoin‘s recovery.
The memecoin recorded a 15% bounce over five days, reviving at a level that has been critical for the past month. This move opens the possibility for Dogecoin to climb beyond $0.1 once again.
However, the long-term trend is still considered bearish, as indicated by moving averages and volume indicators. The Chaikin Money Flow was at -0.1, showing significant capital outflow on the daily chart.
The 1-month liquidation heatmap available on CoinGlass shows a cluster of short liquidations in the $0.10-$0.11 area. This concentration could pull prices higher to trigger a liquidity sweep.
A rally must extend beyond $0.127 to break the longer-term downtrend. At press time, the local lower high at $0.1 was about to be overcome with high trading volume.
This activity indicates short-term demand and could signal a range formation between $0.088 and $0.105. The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
