- Strong bullish momentum may result from liquidations generated by nearly $645 million in leverage positions.
- The price breaking above $0.21-$0.22 presents the potential for DOGE to advance higher yet a falling price will likely result in market consolidation within the $0.18-$0.19 range.
- The recent price rise of DOGE past $0.2027 indicates lower potential for forced sales yet its market position remains easily affected by volatility.
The liquidation heatmap for Binance DOGE/USDT perpetual futures over a 3-day period reveals key price levels where leveraged positions are concentrated.Data shows that the price of Dogecoin (DOGE) experienced a notable downtrend, reaching a low around $0.17, before reversing and gradually climbing towards the $0.21 mark.
Analyst Ali suggests that the market shows high liquidation risk at $0.21 through approximately $644.53 million in leverage positions. The Liquidation Layer at $0.21 will trigger numerous forced position closings by short traders leading to additional bullish market momentum. The price of DOGE should rise toward $0.23 and potentially higher if it achieves a confirmed move through the $0.21-$0.22 region due to the typical rapid momentum shifts from liquidation-driven price surges.
A failure to surpass $0.21 resistance could trigger both consolidation as well as potential retrace movements between $0.19 and $0.18 before additional breakout attempts. The intense number of potential liquidations make this resistance point essential for traders on both sides.
DOGE Liquidations Cool After Major Volatility Spikes
The DOGE Total Liquidations Chart available on Coinglass reveals strong liquidation spikes occurred during mid-November and early February indicating periods of high market volatility. Short liquidations drove the biggest liquidation event in mid-November when the market experienced an abrupt price surge. The price rally caught traders who bet against DOGE by surprise because of its bullish breakout.
Currently, DOGE’s price appears to be in an uptrend, surging above $0.2027, with liquidation levels stabilizing at lower volumes. This indicates a potential cooling-off phase after recent volatility. If DOGE sees a resurgence in buying pressure, a new wave of long liquidations may occur above resistance levels.
Doge Price Outlook
Data from Coincodex suggest that , the next five days, Dogecoin will reach the highest price of $ 0.470938 on Mar 07, 2025, which would represent 131.63% growth compared to the current price.
