Dogecoin’s (DOGE) price is primed to see gains as the recent increase in price has triggered recovery.
The short liquidations observed in the last 24 hours have generally been followed by a rise, which might also be the case this time.
Will Dogecoin Bears Step Back?
Dogecoin’s price rose by 11% in the past day when the entire crypto market rallied, bringing the meme coin to trade at $0.163. This led to the traders who were pining for a price fall losing their money, as evident in the short liquidations worth nearly $7 million.
This is the largest single-day short liquidation in more than two months. Historically, such large liquidations have seen rises in the following days, and the same is anticipated presently. This liquidation may also result in the bears backing off as investors await a rally.
Dogecoin Liquidation. Source: Coinglass
Investors’ optimism is fueled by the $1.28 billion worth of profits they will witness. According to the Global In/Out of the Money (GIOM) indicator, about 7.87 billion DOGE were bought between $0.16 and $0.18.
This supply could turn profitable soon since Dogecoin’s price is exhibiting bullish signs. However, this would warrant a breach of the $0.16 resistance level. Since DOGE holders are close to noting such huge profits, they will likely act accordingly until the altcoin hits $0.18.
Read More: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Dogecoin GIOM. Source: IntoTheBlock
This will likely drive the rally.
DOGE Price Prediction: Where Will the Rise Stop?
Dogecoin’s price has moved within an ascending triangle pattern for the past month. The ascending triangle pattern is a bullish continuation pattern characterized by a horizontal resistance line and an upward-sloping trendline. It indicates that buyers are gradually gaining strength, often leading to a breakout above the resistance level.
DOGE is breaking out of this pattern at the time of writing, with volumes declining consistently. However, the pattern will be validated when the meme coin marks a 22% rally to reach $0.20. This crucial price point has been marked as a target per the pattern and also stands as key psychological support.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
Dogecoin Price Analysis. Source: TradingView
However, the more practical outcome would be Dogecoin’s price breaching $0.18, making the aforementioned supply profitable.
On the other hand, failure to breach $0.16 could lead to a fallback into the pattern. This would turn the breakout into a fakeout, and further decline could send DOGE to $0.15 or lower. Consequently, the bullish thesis would be invalidated.
