Key Takeaways
Dogecoin dropped 5.8% as Bitcoin pulled below $112k. RSI and OBV showed mounting bearish pressure, while the heatmap flagged $0.24 as swept, leaving $0.207–$0.21 as the next liquidity cluster.
Dogecoin [DOGE] fell 5.81% on Monday, the 25th of August, measured at the time of writing.
Analysis of the lower timeframe charts suggested the session could turn more bearish, especially with Bitcoin [BTC] dropping below $112k.
Source: DOGE/USDT on TradingView
Dogecoin has been trading within a range from $0.142 to $0.25 since March. It attempted a bullish breakout in July.
A Bitcoin reset from $120k to $114.7k cut short DOGE bulls’ breakout hopes.
At the time of writing, the mid-range level at $0.196 beckoned Dogecoin prices lower. The OBV stood near early-August lows and signaled steady selling pressure over the past two weeks.
In fact, the wilting RSI also highlighted a potential shift in momentum in favor of the bears.
What is in store for Dogecoin this week?
Source: DOGE/USDT on TradingView
Monday did not yield a good start to the crypto market. Following the BTC rejection at $113.6k, the altcoin market shed 4% in market capitalization.
On top of that, Dogecoin was unable to hold on to the $0.224 level. This marked the 75% support level within the long-term range highlighted earlier.
Given the bearish momentum and selling pressure in recent hours, it seemed likely that the leading memecoin could retest the $0.21 support zone.
A week ago, DOGE rallied from this demand zone. Then, the rally faltered at $0.241, a key short-term resistance level.
Liquidity Heatmap points to $0.207 cluster
Source: CoinGlass
The 2-week Liquidation Heatmap showed that $0.24 was a strong magnetic zone. Once swept, it triggered a bearish reversal.
On top of that, the next notable cluster sat near $0.207.
This was just under the bullish order block highlighted in cyan on the 1-hour timeframe. Therefore, there was a good chance that Dogecoin would fall deeper.
In fact, a retest of the $0.20–$0.21 range could still pave the way for a rebound, if buyers step back in.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
