- Dogecoin approached key resistance at $0.115, signaling a potential upside breakout.
- Bullish liquidation trends and strong open interest indicate growing trader confidence.
Dogecoin (DOGE) has attracted attention with large transactions, suggesting growing interest from institutional players and whales. At press time, DOGE was trading at $0.1091, down 0.56%.
However, this price action has raised an important question: is DOGE preparing for a breakout, or will it stay within its current range? Several factors provide insight into where Dogecoin could go next.
Can DOGE hold on?
Dogecoin price was fluctuating between crucial support at $0.108 and resistance at $0.115. Therefore, breaking through these levels could set the tone for the next move.
If DOGE rises above $0.115, an uptrend could follow, leading to increased bullish momentum.
However, if the price fails to hold the support, it could test the $0.100 level. Therefore, the next few days will be crucial in determining whether Dogecoin can break out of this range.
Source: TradingView
Dogecoin Social Domination: Is the Hype Real?
Dogecoin’s social dominance was 1.09% at press time, reflecting its strong presence in the crypto community. This engagement is essential for memecoins, as social buzz often drives market activity.
Therefore, growing social dominance could spark renewed buyer interest.
However, if social media conversations decline, it could dampen enthusiasm and slow any potential rebound. Therefore, maintaining or increasing social presence is crucial for Dogecoin’s price action.
Source: Santiment
Open interest: what are traders indicating?
Open interest for Dogecoin stood at $520.69 million at press time, down slightly by 1.73%. This drop indicates that some traders were being cautious and taking profits.
However, the overall high level of open interest suggests that there is still significant activity in the market and that a possible price action could be in the works.
If Open Interest rises again, it will likely signal renewed confidence and increased volatility, which could push DOGE higher.
Source: Coinglass
Liquidation data
Dogecoin liquidation data revealed $5.25,000 in short liquidations versus $18,320,000 in long liquidations. This imbalance suggested that bullish traders were holding on, with fewer short sellers confident in a downtrend.
This could increase the upward pressure on DOGE, pushing the price towards a potential breakout.
Source: Coinglass
Read Dogecoin (DOGE) Price Prediction 2024-2025
Will Dogecoin Burst?
Based on current metrics, Dogecoin appears to be building the momentum needed for a breakout. Therefore, if it manages to break the $0.115 resistance and hold the support, a rally is very likely.
All indicators point to an imminent development, making the next few days crucial for DOGE’s future trajectory.
