Dogecoin recorded its largest single-day liquidation in over a year yesterday as millions of dollars were wiped out from the crypto market. Despite this development, crypto analysts have suggested that DOGE can still bounce back.
Dogecoin Records Over $86 Million In Liquidations
Coinglass data shows that Dogecoin has recorded over $86 million in liquidations in the last 24 hours, the most in a single day since over a year. Long positions suffered the most liquidations, as DOGE dropped below $0.40, a range it has been consolidating around for a while now. These DOGE liquidations were sparked by the bearish sentiment in the broader crypto market as the Bitcoin price dropped to as low as $95,000.
Crypto analyst Ali Martinez suggested that this flush was needed, possibly to flush out overleveraged longs. In an X post, the analyst revealed that the funding rate for Bitcoin has reset. The funding rate for DOGE also reset, which could indicate that DOGE is ready for its next leg up.
In another X post, Martinez provided a bullish outlook for Dogecoin, indicating that DOGE’s bull run is far from over. He highlighted a chart that showed that the foremost meme coin is still in the early stages of its bull cycle. In line with this, the crypto analyst remarked that he is thankful for the dip.
Ali Martinez further mentioned that he will look to buy more DOGE between the $0.30 and $0.40 range. The crypto analyst affirmed that the target for DOGE in this bull run remains $3. He added that if things go wild, then Dogecoin could reach as high as $18. Before now, he predicted that DOGE could even rally to as high as $23, having broken above the $0.50 Fibonacci retracement.
DOGE Heading To Oversold Zone
In an X post, crypto analyst Trader Tardigrade stated that DOGE had left the oversold zone and is now heading to the overbought zone, which is projected linearly at around $8 to $10. He remarked that he considers those targets the market top for DOGE in this market cycle. The crypto analyst had recently advised market participants to start securing profits when Dogecoin hits $10.
In the meantime, Dogecoin could still witness significant price corrections. In an X post, crypto analyst Kevin Capital warned that DOGE could drop further if it starts closing candles below the yellow trendline he highlighted on his accompanying chart. He noted that Dogecoin’s current price action lines up with the bearish daily indicators. The analyst also hinted that DOGE was likely to drop if the Bitcoin price continues to retrace.
At the time of writing, the Dogecoin price is trading at around $0.4, down over 8% in the last 24 hours, according to data from CoinMarketCap.
