Dogecoin (DOGE) has recently made headlines in the cryptocurrency market with a substantial 35% increase in large transactions. This surge is often viewed as a precursor to significant price swings, indicating that the asset could be on the brink of a major move.
At the time of writing, Dogecoin is trading at $0.1002, just below the critical resistance level of $0.1042. If the current momentum persists, the price may break through this resistance and continue to rise. A breach of this level would likely trigger the liquidation of 322,000 DOGE, potentially igniting a new wave of buying.
Source: IntoTheBlock
Liquidation Heatmap Reveals Crucial Price Points
According to the liquidation heatmap data, the $0.1042 and $0.1000 levels are particularly significant for Dogecoin’s next move. Most liquidations are anticipated to occur around these key levels.
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If Dogecoin successfully breaks above $0.1042, this could lead to substantial buy liquidations, further driving up the price. Conversely, if DOGE drops to $0.1000, sell liquidations could push the price downward, resulting in a bearish trend.
Despite the recent fluctuations, Dogecoin holders appear confident. Analysis from AMBCrypto, leveraging IntoTheBlock data, shows that 82.43% of DOGE holders remain in profitable positions. This strong market sentiment suggests a prevailing belief in Dogecoin’s potential for future gains.
Source: IntoTheBlock
Uncertainty Looms Amid Price Movements
However, the recent surge in large transactions has introduced some uncertainty into the market. While such spikes often signal increased buying activity, they can also indicate potential selling pressure. As a result, the short-term trajectory of Dogecoin remains unclear, with both bullish and bearish scenarios possible. As Dogecoin hovers near these critical price levels, its next move will be crucial.
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If the price surges past $0.1042, it could generate further bullish momentum, encouraging more buying activity. On the other hand, if the price dips to $0.1000, increased selling pressure could lead to a downward trend.
Therefore, this is a pivotal moment for DOGE, with the next price movement likely determining its short-term future.
