Dogecoin price chart depicted a behavior through a Wyckoff Logic analysis, highlighting the progression through the Wyckoff market cycle.
DOGE navigated through the Accumulation phase, marked by ‘Jump The Creek’ patterns, signaling a transition into the Mark Up phase.
This phase was characterized by increasing prices and higher trading volumes, indicative of growing trader interest and market participation.
Dogecoin saw a breakout and retest at key resistance levels, which confirmed the strength of the upward trend.
This Breakout and Retest phase acted as a confirmation of market strength, typically followed by short-term profit-taking before further upward movements.
Dogecoin Price Action To Get Crazy?
Into 2025, Dogecoin price successfully entered the first wave of the Mark Up phase. This was demonstrated by a significant price increase towards the upper resistance of the Accumulation phase, followed by consolidation.
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The price appreciated sharply, hinting at an approaching ‘Blow-Off Top,’ a phase marked by a rapid and steep price increase, typical of the culmination of the Mark Up phase.
Following this, the anticipated Distribution phase could involve the selling off by early buyers at profit, leading to a potential increase in supply over demand.
This shift could initiate the Mark Down phase, where prices would decrease, completing the cycle.
Throughout these phases, Dogecoin showed typical Wyckoff behaviors—each phase serving as a cause for the subsequent effect, driving the cyclical nature of market dynamics.
As the cycle continued, these patterns provided critical insights into potential future price movements and trader behavior, underscoring the importance of understanding market structures in predicting future trends.
DOGE Price Reaction on Daily 8EMA
However, DOGE rejected off the daily 8 EMA. This was evident as the price attempted to breach this exponential moving average but faced resistance.
During this period, DOGE showed a series of higher highs on a 10-minute timeframe, signaling an upward trend that struggled to maintain momentum at higher levels.
The trendline, acting as a support, further framed the price action. Each touch of the trendline prompted a temporary rebound, yet the price continued to test the 8 EMA without breaking through, suggesting a consolidation phase with a bearish tilt.
This movement between the EMA and the trendline indicated market uncertainty.
Notably, the daily 8 EMA served as a critical point for potential reversals. This pattern could forecast a potential downturn unless Dogecoin price establishes a clear break above the 8 EMA.
If the trendline support breaks, it might lead to further declines, underscoring the importance of these technical indicators in assessing future price movements.
Liquidity Swings on Dogecoin
Binance’s DOGE/USDT Liquidation Heatmap depicted a notable swing in liquidity, primarily concentrated on the long side as traders anticipated upward movements in Dogecoin’s price.
DOGE was oscillating between $0.30 and $0.34, highlighting significant trading activity. The densest area, $0.30, of liquidation leverage signified concentrated points where traders faced liquidations.
This price behavior suggested a bullish sentiment among Dogecoin traders, who continued to support the price at higher leverage levels despite facing risks of liquidation.
These patterns implied a sustained interest in holding long positions, expecting the price might ascend further.
This accumulation of long positions could potentially drive the price upward if sustained buying pressure prevailed.
