- Doge was consolidated in a tight range with repeated rebounds on a key support.
- Is the current compression phase calm before a break in volatility?
DOGECOIN (DOGE) Can be started for its next directional movement.
After spending last week rolling between $ 0.14 and $ 0.17, the price of prices imitates the previous compression phases which often preceded acute eruptions.
In particular, DOGE rebounded at the start of the last week of the second quarter, bouncing on a key support area tested in early April. This level could serve as a springboard for a thrust to $ 0.20 if the bulls resume the momentum.
But the configuration remains fragile. Since the exceeding of almost $ 0.25 in early May, DOGE has experienced three failed escape attempts, each has encountered long liquidations, signaling low follow -up of buyers.
In fact, the most recent decline to $ 0.14 marked the fourth low consecutive in a 60 -day window, strengthening the structure of the lower market.
Source: tradingView
On the derivative side, the perpetuates of Binance Doge / Usdt show a domination of 75% long, highlighting a strong conviction of trader.
However, so strongly biased positioning Also amplifies the risk of a crowded trade. In turn, increase the probability of another long -term liquidity scan.
Conversely, if chain resilient demand leads to this leveraged positioning, the current consolidation of DOGE probably signals a strategic accumulation rather than the indecision of the market.
In this case, the bulls could prepare the terrain for a classic bear trap that catches too extensive shorts off guard.
The Doge Lever takes place on advice on market stabilization
The recent DOGE price action reveals more than volatility at the surface level.
As the graph below shows, the decrease of 32% compared to its summit in early May of $ 0.25 was not just a technical decline.
Instead, he marked a large -scale lever effect. The long domination of liquidation increased to 96.29% while the outdated bulls were forced to relax.
Source: Glassnode
This followed, however, indicates a potential change in the market structure.
The domination of liquidation has since strongly cooled, going at only 6.14%, marking its lowest level this month, and suggesting that the worst lever bleeding can be finished.
Even more revealing: when the liquidation domination increased to 97.56% on June 21, Doge did not drive as in May. This resilience could be a sign that the The market structure stabilizes under the surface.
In this context, the current long bias could represent a post-Fush strategic accumulation rather than an imprudent lever effect.
In turn, prepare the ground for a conventional bear trap, with late shorts potentially supplying pressure to the $ 0.20 bar.
