Why DOGE traders should follow the next level of $0.196?

The price of Dogecoin (DOGE) has been rejected at the resistance level of $0.285. Previously, this level was tested as a resistance zone in February.

Meanwhile, the selling pressure on Bitcoin has not been too strong in recent days. BTC has fluctuated in the zone from 116,700 to 122,000 dollars; however, the selling pressure in the past 24 hours has pushed the price below the bottom of this range.

Even when BTC is moving sideways, DOGE has not shown much strength. The $0.25 level – where the bulls hoped to defend – was easily breached.

At the time of writing, the price zone in the range – specifically the level of $0.196 – is the next high-risk target for DOGE.

Technical indicators forecast negatively for DOGE

DOGE Price Chart | Source: TradingViewThe range (white) of DOGE extends from $0.142 to $0.25. The 50-period moving average (MA 50) is just below the midpoint of the range at $0.196 and both are expected to act as support.

However, the price's inability to hold the $0.25 level as support last week is a worrying sign.

The OBV indicator has created a new low compared to last week, while the RSI has also slipped below the neutral threshold of 50 at the time of writing. Both indicators suggest that the bears are in control.

If the price falls below the 0.195 dollar mark, it will be a clear signal that the bottom zone at 0.142 dollars is the next target. Until then, swing traders should wait instead of rushing to open a Short position.

The liquidation map of DOGE on Binance (2 weeks) | Source: CoinglassAccording to data from Coinglass, the liquidation map over the past 2 weeks shows a certain amount of liquidity just below the $0.2 level. Above, the levels of $0.227 and $0.25 are significant liquidity zones.

The concentrated liquidity cluster at the top indicates that although the bears are in control, the price still has the potential to be pulled higher in the coming days.

DOGE liquidation map on Binance (3 days) | Source: CoinglassThe possibility of DOGE bouncing back in price will be reinforced if Bitcoin can reclaim the $116,700 level as a support zone once again.

The liquidation map in 3 days for DOGE also shows that the possibility of the price bouncing back to the level of 0.23 dollars is quite high. In the short term, the price could completely recover but will depend on the movements of BTC.

For long-term investors, the false breakout last week was disappointing, but if the price drops close to the bottom zone, it could present an opportunity to buy more.

Minh Anh