Dogecoin is eyeing a breakout as traders monitor key resistance and bullish signals.
- Dogecoin neared key resistance at $0.115, signaling a potential bullish breakout. Bullish liquidation trends and strong Open Interest indicate rising trader confidence.
Dogecoin [DOGE] has been gaining attention with large transactions, suggesting growing interest from institutional players and whales. At press time, DOGE was trading at $0.1091, showing a 0.56% drop.
However, this price action raised an important question: is DOGE preparing for a breakout, or will it remain within its current range? Several factors provide insight into where Dogecoin might be headed next.
Can DOGE hold strong?
Dogecoin’s price was fluctuating between crucial support at $0.108 and resistance at $0.115. Therefore, breaking through these levels could set the tone for the next move.
If DOGE breaks above $0.115, a bullish trend could follow, driving more upward momentum.
However, if the price fails to hold support, it could test the $0.100 level. Consequently, the next few days will be critical in determining whether Dogecoin can break free from this range.
Source: TradingView
Dogecoin social dominance: Is the hype real?
Social dominance for Dogecoin was 1.09% at press time, reflecting its strong presence in the crypto community. This engagement is essential for memecoins, as social buzz often drives market activity.
Therefore, rising social dominance could spark renewed buying interest.
However, if social media conversations decrease, it could dampen enthusiasm and slow down any potential rally. Consequently, maintaining or increasing social presence is crucial for Dogecoin’s price action.
Source: Santiment
Open Interest: What are traders indicating?
Open Interest in Dogecoin was at $520.69 million at press time, with a slight decline of 1.73%. This dip indicated that some traders were exercising caution and taking profits.
However, the overall high level of Open Interest suggested that there was still significant market activity, and a potential price move could be in the works.
If Open Interest rises again, it will likely signal renewed confidence and increased volatility, which could push DOGE higher.
Source: Coinglass
Liquidation data
Dogecoin’s liquidation data revealed $5.25K in short liquidations versus $18.32K in long liquidations. This imbalance suggested that bullish traders were holding firm, with fewer short sellers confident in a downward trend.
This could increase the upward pressure on DOGE, pushing the price toward a potential breakout.
Source: Coinglass
Will Dogecoin break out?
Based on current metrics, Dogecoin appeared to be building the momentum needed for a breakout. Therefore, if it can break the $0.115 resistance and maintain support, a rally is highly likely.
All indicators point toward an imminent move, making the next few days critical for DOGE’s future trajectory.
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