Dogecoin Holds Above $0.164, Faces $216M Liquidation Risk

Dogecoin (DOGE) has recently faced challenges in maintaining momentum, struggling to break through key resistance levels. As of the latest update, DOGE is holding at $0.169, just above the crucial support level of $0.164. This stagnation suggests a potential for further declines, but key investors remain steadfast in their holdings.

The liquidation map indicates that approximately $216 million worth of long positions could face liquidation if Dogecoin’s price declines to $0.150. This price point is not far from its current critical support of $0.164. If DOGE drops below this level, the liquidation of long contracts could fuel a further sell-off, pushing the price lower and likely prompting more bearish sentiment among traders. This would discourage new investments in the meme coin.

Moreover, the threat of liquidation looms large as the price hovers near critical support levels. If DOGE continues to weaken, traders may be more inclined to exit positions, exacerbating the downtrend. On the other hand, Dogecoin’s long-term holders (LTHs) seem to be focused on accumulating the asset at its current low price. The HODLer net position change shows an increasing number of LTHs who are confident in eventual price recovery. As DOGE remains relatively inexpensive, these investors view the current conditions as a potential opportunity for future gains.

This accumulation by LTHs could serve as a buffer against further price declines. Their confidence in Dogecoin’s recovery and long-term potential is helping to sustain the current price levels. If these holders continue to accumulate, it could prevent a drastic drop and even pave the way for a future price rebound. At the time of writing, Dogecoin is trading at $0.169, just above the critical support of $0.164. The altcoin has been unable to break the $0.176 resistance for several days, showing signs of stagnation.

The likely outcome is continued consolidation above $0.164 as investors await a potential catalyst for upward movement. If Dogecoin manages to breach the $0.176 resistance, it could quickly rise to $0.198, marking a positive shift in sentiment. This would likely encourage more buying activity and help push the price higher. However, without sufficient momentum, DOGE will remain trapped within its current range, potentially facing further consolidation.

If the price falls below $0.164, it could slip to $0.147 in the coming days, triggering more than $216 million in long liquidations. This scenario would signal a shift toward bearish momentum, invalidating Dogecoin’s bullish outlook. The coming days will be crucial in determining whether DOGE can recover or continue its decline.