Dogecoin could rally if it holds 'here'... will it rise in the first quarter?
Dogecoin could rally if it holds 'here'... will it rise in the first quarter?
Dogecoin (DOGE) is facing a risk of short-term price correction after failing to break above a key resistance level, triggering large-scale liquidations exceeding $2 million.
According to cryptocurrency-focused outlet The Crypto Basic on February 10 (local time), approximately $2.07 million worth of positions were forcibly liquidated in the Dogecoin market over the past 24 hours, intensifying downward pressure on prices. This wave of liquidations is interpreted as the result of Dogecoin failing to hold support at the critical $0.124 level, leading to a sharp deterioration in investor sentiment. As volatility expands across the broader digital asset market, including Bitcoin (BTC), the breakdown of support in Dogecoin, the leading meme coin, is further amplifying downside pressure across the altcoin market.
Analyst Mark Brennan noted that Dogecoin has retreated significantly from its recent highs and is currently moving sideways uneasily around the $0.10 level. Dogecoin has made multiple attempts to reclaim its recent peak of $0.124, but each effort has been met with resistance due to a lack of sustained buying support. These technical limitations have fueled short-term profit-taking, ultimately escalating into a large liquidation event that has pushed prices toward lower levels.
The Relative Strength Index, a key technical indicator, is now approaching oversold territory, leaving room for a potential technical rebound, although selling pressure remains strong. An examination of changes in open interest in the futures market shows that many investors have closed positions and shifted to a wait-and-see stance. Brennan emphasized that for Dogecoin to halt its downtrend and secure a reversal momentum, it must decisively reclaim and stabilize above at least the $0.11 level.
Dogecoin’s future trajectory will depend on broader macro market factors, including Bitcoin’s price movement and liquidity changes within the XRP ledger. If Dogecoin fails to defend the $0.10 support level, there is a persistent risk of a rapid slide toward the lower end of the descending channel, around $0.08 or even $0.05. Conversely, if whale investors view the current dip as an accumulation opportunity and step in with large-scale buying, the supply-demand structure could improve and spark an unexpected rebound.
Dogecoin is currently absorbing the shock from large-scale liquidations as it passes through a new inflection point. Whether it can reclaim the pivotal $0.11 level is expected to serve as a key gauge in determining if Dogecoin can initiate another upward rally within the first quarter. Market participants are closely monitoring real-time on-chain data and tracking whale wallet movements to anticipate Dogecoin’s next move.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.*
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