- Dogecoin dropped nearly 5%, but a $16.91M buying surge and rising long positions hint at a possible rebound.
- A $1.4M liquidation cluster above current levels could pull the price higher in the short term.
Dogecoin (DOGE) took a bearish turn in the past 24 hours, falling 4.97%, despite boasting a strong 20.57% gain over the past month. This decline has raised eyebrows, especially as it coincides with a significant surge in buying activity, suggesting that traders might be gearing up for a potential reversal.
The memecoin recently hit a tough resistance level—one it’s struggled to break through in the past. On five previous occasions, this level triggered retracements, and only once did DOGE manage to hold above it. This historical resistance appears to be playing its part again in the latest downturn.
Also read: Ethereum Price Dips Below $2.5K After $2.7K Rejection – Key Support Levels Traders Must Watch
However, the story doesn’t end there.
Despite the dip, data from CoinGlass shows that traders scooped up a whopping $16.91 million worth of DOGE, as confirmed by the Exchange Netflow metric. What’s more, the bulk of these purchases have moved off exchanges into private wallets—an indication of long-term confidence among spot buyers.
The futures market is echoing that sentiment. The Open Interest Weighted Funding Rate has climbed to 0.0047%, staying in positive territory. This implies that long contracts continue to dominate, signaling that many traders are betting on a price recovery.
Adding fuel to the bullish fire is Dogecoin’s Liquidation Heatmap. A $1.4 million liquidation cluster sits just above the current price zone. Historically, such high liquidation areas act as magnets, attracting price action toward them as shorts get squeezed out.
While DOGE’s latest move may appear bearish on the surface, the underlying market dynamics suggest the opposite. With growing interest from both spot and futures traders, and a tempting liquidation target in sight, Dogecoin could be poised for a breakout.
