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Ichimoku and RSI indicators show no bullish momentum. The coming days could determine whether DOGE stages a recovery or slides into a deeper correction. DOGE lags behind Bitcoin and Ethereum amid broader altcoin pullback.

Dogecoin is navigating a volatile phase as its price hovers just above key support levels.

After hitting a local high near $0.2, DOGE has trended downward, raising fresh doubts about the memecoin’s strength in the current market.

While leading cryptocurrencies like Bitcoin and Ethereum continue to consolidate, Dogecoin has struggled to maintain momentum.

The asset risks erasing nearly all gains from the past 30 days unless it can break through critical technical barriers and absorb significant short liquidations, estimated to exceed $500 million.

The coming days could determine whether DOGE stages a recovery or slides into a deeper correction.

The Dogecoin price has hovered near a key liquidation zone at $0.165, where leverage from traders has accumulated above $500 million. This threshold is seen as a pivotal point for a potential short squeeze.

Source: CoinMarketCap

To break higher, the price may need to dip below this level to trigger liquidations, potentially forcing out short positions.

Such a move could clear the way for a stronger rebound and extend the upward trend.

This could allow bulls to target a return to $0.18 and eventually retest $0.2.

Technically, Dogecoin’s outlook remains weak. After failing to stay above its ascending trend line, DOGE has experienced sustained downward pressure.

The Ichimoku cloud’s conversion line is acting as stiff resistance, and there’s no indication yet of a bullish crossover.

Meanwhile, the Stochastic RSI has reversed after testing average levels, underscoring the growing influence of bearish sentiment.

DOGE is expected to test support at $0.162, a level below the $0.164 liquidation zone.

However, failure to hold this support could deepen the drawdown and prompt traders to reassess the memecoin’s long-term viability.

While Dogecoin reached as high as $0.2 earlier this year, the question now is whether it can sustain such levels or rise further in 2025.

For this to happen, the token must establish consistent upward momentum, clear resistance levels, and attract renewed investor interest.

This appears challenging given its current technical weakness and absence of strong bullish signals.

Still, market volatility could favour sharp movements in either direction. If the expected short squeeze plays out after testing $0.162 support, DOGE may rally back towards $0.18 and $0.2.

But unless broader market conditions improve and sentiment shifts decisively, reaching the $0.5 mark in 2025 appears increasingly unlikely based on current data.

The post Dogecoin faces $500 million liquidation test as price eyes $0.2 recovery appeared first on CoinJournal.

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