- Dogecoin volume indicator showed rising buying pressure.
- The liquidation heatmap suggested that DOGE prices would be attracted upward in the near-term.
Dogecoin [DOGE] maintained its long-term bullish outlook. The price action chart favored the bulls, but there was significant resistance near the local highs. These liquidity pockets could force bears to retreat.
The trading activity on the 9th of April saw prices dip by 9%, accompanied by a drop in trading activity. Since then, DOGE has not broken this short-term downtrend, with $0.2035 being the key short-term resistance in the 1-hour timeframe.
The demand was steady but the momentum has stalled
Source: DOGE/USDT on TradingView
The market structure was bullish, with the key swing low still at $0.1225. A fall below the $0.1673 level will flip the short-term bias bearishly, and traders can expect a deeper drop to $0.163 or $0.145.
These levels were based on the Fibonacci retracement levels (pale yellow). The RSI on the daily chart was resolutely above the neutral 50 mark. While this signaled bulls were still the favorites, it did not show a clear uptrend in progress.
The CMF climbed back above the +0.05 mark and showed a firm signal of significant capital flow into the Dogecoin market. This flood of demand could drive prices higher, bulls hope.
The magnetic zones to the north had a better chance of drawing prices to them
Source: Hyblock
AMBCrypto’s analysis of the liquidation heatmap showed that Dogecoin was due for a short-term rally.
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It has collected the liquidity just above the $0.18 level during the recent dip. The next local areas of interest are at $0.21 and $0.226.
There was a void of liquidation levels to the south, given that DOGE has just wiped them out till $0.18. Combined with the CMF, it appeared likely that Dogecoin could register a 15% move upward soon.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
