- DOGE has left significant liquidity zones above and below, hinting at a major move soon
- A multi-touch trendline signals a possible liquidity grab before a reversal
- Smart traders should watch key demand and supply levels before making their next move
Dogecoin has been playing mind games lately.
In our last analysis, we spotted liquidity accumulation above a supply zone, hinting at a possible move downward.
And guess what? DOGE initially reacted to the supply but then pushed higher, grabbing liquidity from sellers before finally making its bearish move.
DOGE’s Current Setup: A Trendline Trap?
Right now, the liquidity below remains untouched. Even more interesting, DOGE has formed a trendline with five touches—which, if you’ve been in the game long enough, you know often signals hidden liquidity waiting to be grabbed.
So, what’s next? Two main scenarios:
- Immediate drop—DOGE could break down, hunting the liquidity below, potentially reaching our demand zone.
- Fakeout pump before the dump—There are three highs above that could act as liquidity magnets before a bearish move.
Key Levels to Watch
- Demand zone: If price taps into this, we could see a strong bounce.
- Liquidity pockets: The untouched liquidity above and below will dictate the next major move.
Final Thoughts: No Certainty, Just Probabilities
At the end of the day, no one can predict the market with 100% accuracy. Price moves are driven by liquidity, and while these scenarios seem likely, the market can always surprise us. Manage risk wisely.
P.S. If you’re looking for a reliable trading platform, check out Weex for low fees and fast execution.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
