Dogecoin Holds $0.13 Support as Volume Surges — Potential Reversal
Dogecoin (DOGE) has stabilized around a critical support at $0.13 after a three-month decline that erased roughly 57% of its value. The token recently traded near $0.134, up about 1.6% over 24 hours, while 24-hour trading volume jumped roughly 85% to ~$885 million, signaling renewed trader interest. Technical data from TradingView shows the Average Directional Index (ADX) at 26.28, indicating meaningful directional momentum, and weekly candles suggest a potential reversal pattern if $0.13 holds. Derivatives flows on CoinGlass reveal concentrated liquidation clusters near $0.1273 (large long liquidations) and $0.1345 (short liquidations), pointing to a bullish intraday bias and the potential for short squeezes should price rise. Key levels to monitor: $0.13 (critical pivot), downside target near $0.096 if daily/weekly close falls below $0.13, and liquidation bands at $0.1273 and $0.1345. Traders should watch price action around $0.13, accompanying volume, ADX strength, and liquidation clusters to manage position sizing and risk—short-term setups favour opportunistic long entries only if volume-backed support holds; failure to hold increases downside risk.
Bullish
The news points to a cautiously bullish outlook for DOGE conditional on the $0.13 support holding. Short-term bullish factors: a significant 85% surge in 24-hour volume indicating renewed buying interest, an ADX of 26.28 showing directional momentum, and concentrated derivative liquidations that create potential catalysts for short squeezes near $0.1345. Weekly-chart reversal structure further supports the possibility of a trend change if price and volume confirm. Bearish risk remains clear: a confirmed daily or weekly close below $0.13 would likely extend the downtrend toward ~ $0.096 and invalidate the bullish setup. For traders, the immediate implication is that momentum-driven long trades may be justified with tight stops below $0.13 and position sizing mindful of liquidation bands; holders should monitor volume and ADX to validate strength. Over the longer term, sustained buying above $0.13 with follow-through volume would improve the bullish case, while failure to reclaim and hold key levels will keep downward pressure intact.