Key takeaways
Dogecoin surged to $0.254 but faces resistance at $0.2478 and $0.36. Spot traders sold $39 million in DOGE, signaling bearish pressure. Liquidity clusters suggest potential volatility and short-term price swings.
The Dogecoin [DOGE] has taken a bullish path over the past 24 hours, gaining 7.5% and reclaiming the $0.254 region, at press time.
However, this rally may prove short-lived, as multiple market metrics now point to possible downside risks in both the near and long term. Spot-driven volume also shows sellers dominating the market.
Long-term outlook remains bleak
According to Glassnode’s UTXO Realized Price Distribution (URPD), a key metric used to identify support and resistance levels, DOGE faces a major long-term barrier ahead.
Data shows that while the memecoin has successfully flipped the $0.20 resistance, another major resistance lies ahead at $0.36. This level could serve as a long-term threat to further upside.
Source: Gladsnode
AMBCrypto’s analysis of DOGE’s chart highlights why $0.36 remains a critical hurdle and maps out other potential challenges for the memecoin.
A clearer picture of DOGE
DOGE’s daily chart reveals that $0.36 has historically acted as a ceiling, blocking rallies on at least two occasions.
This rejection level is marked on the chart with a circle on the resistance line. Although the price briefly moved above this level, it failed to close consistently above it.
Source: TradingView
The last attempt at a breakout in January triggered a steep decline, eventually leading DOGE to its 2024 low of $0.15407.
Another immediate threat now looms.
At press time, DOGE traded above a key resistance level at $0.2478—a level that has triggered declines on three separate occasions. With this being the fourth test, the likelihood of another drop increases significantly.
However, if subsequent DOGE candles close above this resistance level, it would imply that the market has tilted in favor of the bulls.
Bearish pressure builds
Spot traders could be fueling this potential downturn.
According to CoinGlass’ Spot Exchange Netflow, spot traders sold $39 million worth of DOGE in the last 24 hours, DOGE’s largest sell-off since the 17th of January, when $589.38 million worth was dumped.
This wave of selling suggests that investors may have set take-profit orders at this level. The behavior of this market segment in the coming days could significantly influence DOGE’s price direction.
Source: CoinGlass
If these investors continue to offload holdings, it would confirm a bearish outlook and increase the chances of DOGE trending lower.
However, renewed buying could support an upward move past the $0.2478 resistance zone.
Accumulation opportunity or more pain?
The liquidation Heatmap presents a different scenario.
At press time, two major liquidity clusters appeared, with one above and one below DOGE’s current price.
The cluster above, between $0.259 and $0.260, contains $11.21 million in sell orders, while the cluster below, between $0.250 and $0.249, holds $11.61 million in buy orders.
Source: CoinGlass
This setup creates a potential opportunity. If the upper liquidation levels are triggered first, DOGE could retrace to the lower clusters, which may act as a demand zone and push the price higher.
Conversely, if DOGE trades into the lower liquidity clusters first, it may rise toward the upper clusters, which would then act as a supply zone.
Without strong support beneath the current price, a sustained downtrend could follow.
