Main Takeaways:
- If Dogecoin breaks out of the flag pattern, its price could rise to $0.22.
- DOGE breaking above $0.19 might cause a $55 million short position wipeout.
- DOGE public traders vs professional investors.
Dogecoin Price Update
A bull flag pattern formed on the 1-hour chart for the DOGE/USD pair. The strong price increase from $0.1520 to $0.1850 created the ‘flagpole’ after a big rise in buying pressure.
DOGE price showed a period of consolidation within two downward-facing trend lines. Therefore, it developed the flag sequence from $0.1680 to $0.1840. This price trend commonly suggested a temporary break before a further trend, as the ongoing uptrend had the potential to persist.
The Dogecoin price was reaching the top boundary of the flag pattern between $0.1810 and $0.1840 at the moment of analysis. If the price breaks above the resistance, it could confirm the bull flag pattern and lead to a potential price rise.
This could push DOGE toward hitting $0.22 by measuring the distance from the starting at the breakout point and extending through the flagpole’s length.
If the price breaks above resistance, it could create strong positive momentum, attracting more investors. However, if the price drops below $0.1680, it would cancel the bullish outlook for DOGE.
If the price drops to $0.1600 and $0.1520, where the last strong price jump is initiated, then traders should observe consistent underperformance in Dogecoin’s worth.
Dogecoin Short Liquidations Surge as Price Gains Momentum
Traders observing DOGE prices would find themselves on the corner because of the possibility of price changes. A surge in price above $0.19 would trigger millions of dollars in short positions liquidation dangers. It might surpass $55 million.
Reviewing heatmaps disclosed that short sellers had heavily committed to their positions by about $0.1908. That is expected to trigger considerable market changes.
DOGE has been falling in price for the past three months, dropping from $0.44 to around $0.15. Most traders made strong bets on the price dropping further between $0.19 and $0.25, which created areas with less liquidity.
If DOGE drops below $0.19, it could trigger a quick series of sell-offs, as short sellers would have to buy back their positions to limit losses. Market data indicates that $55 million worth of short positions could be quickly liquidated.
Public Traders Vs Professional Investors
The mood within the DOGE network showed
excited expectations as the sentiment reading hit 0.77. The whole hopeful prospective outlook about Dogecoin could have developed from social media attention and heightened interest in cryptocurrency.
According to professional investors’ sentiment readings of -0.32, knowledgeable traders and investors showed a negative attitude toward the DOGE price.
The exceptional market insight, merged with greater capital, was likely to continue a more guarded perspective about the future of Dogecoin price achievement.
The difference between what the general public thinks and what experts say could lead to big price changes during times of cryptocurrency market shifts.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
