- DOGE is consolidating after last week’s drop, with liquidity building on both sides
- A move downward could happen first to grab liquidity before a potential breakout
- No trade is risk-free—waiting for confirmation is key before jumping in
Dogecoin has been moving sideways for about a week now, following last week’s drop.
It’s a classic consolidation phase—price is building up liquidity on both sides, but there’s a lot more sitting above than below.
What’s Next for DOGE?
Right now, I see a strong chance of a liquidity hunt to the downside before a breakout to the upside.
This means price could dip lower first, grabbing the liquidity below, before making a move upward.
In situations like this, zooming in on lower timeframes doesn’t make much sense. When liquidity is stacked on both sides, it’s risky to take action before one side gets cleared.
It’s like trying to predict which way a coiled spring will pop—too much uncertainty until the tension releases.
A Quick Look at Liquidity
For those unfamiliar, liquidity in trading refers to areas where stop losses and pending orders are stacked.
Market makers love to hunt these zones before pushing the price in the real direction. Right now, DOGE has left a good amount of liquidity below—but even more above.
Final Thoughts
At this point, it’s all about patience. Will DOGE grab liquidity below before making a run upward? That’s what I’m watching for.
But let’s be real—nothing is ever 100% certain in trading. The market does what it wants, and unpredictable moves can always happen. These are just the most likely scenarios based on price action and liquidity zones.
What do you think? Will DOGE follow this setup or surprise us again?
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