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The broader crypto market showed signs of recovery early Sunday with major cryptocurrencies, including Dogecoin, returning to the green.
At the time of writing, DOGE was up 2% in the last 24 hours to $0.096. The positive price increase caught short sellers unawares, with short positions accounting for the majority of liquidations in the last 24 hours.
According to CoinGlass data, short liquidations accounted for $470,140 or 4,897,291 DOGE in the last 24 hours.
The price action in the last 24 hours continues a recovery from the March 8 low of $0.086. Although Dogecoin's price rise has been slow, the market is presenting signs of renewed demand.
Dogecoin rose for three days at a stretch from March 12, rising to the higher bound of its recent trading range. The broader picture still remains that of consolidation, with Dogecoin trading sideways between $0.0799 and $0.117 since February.
What's next?
Dogecoin resorted to a tight trading range between $0.094 and $0.097 after a three-day rise took its price to $0.101 on March 13.
The tight trading range suggests a potential range expansion in the immediate term. A break above the daily MA 50 near $0.1 might open the door to a rise to $0.12.
Dogecoin may consolidate between $0.09 and $0.12 for a little longer if the price drops from $0.12. A close above the $0.12 resistance might pave way for a rally to the $0.16 level, while a break below the $0.09 support will target $0.0799.
A potential catalyst for Dogecoin in the coming days is the upcoming payments feature on social media X scheduled to go live next month, although there are no indications of crypto integrations yet.
In February, X's Head of Product Nikita Bier indicated that crypto trading tools would arrive on X through Smart Cashtags but clarified the application would not execute trades or act as a brokerage.
Dan Burgin
Vladislav Sopov
