Dogecoin News Today: Dogecoin Surges 25% to $0.254, Faces $39M Sell-Off

Dogecoin has experienced a significant surge in the past 24 hours, reaching $0.254, but faces resistance at $0.2478 and $0.36. Spot traders have sold $39 million worth of DOGE, indicating bearish pressure. Liquidity clusters suggest potential volatility and short-term price swings.

Despite the recent rally, multiple market metrics point to possible downside risks in both the near and long term. Spot-driven volume shows sellers dominating the market, which could signal a potential downturn. According to Glassnode’s UTXO Realized Price Distribution (URPD), DOGE faces a major long-term barrier at $0.36. This level could serve as a long-term threat to further upside, as it has historically acted as a ceiling, blocking rallies on at least two occasions. The last attempt at a breakout in January triggered a steep decline, eventually leading DOGE to its 2024 low of $0.15407.

At press time, DOGE traded above a key resistance level at $0.2478—a level that has triggered declines on three separate occasions. With this being the fourth test, the likelihood of another drop increases significantly. However, if subsequent DOGE candles close above this resistance level, it would imply that the market has tilted in favor of the bulls. Spot traders could be fueling this potential downturn, as they sold $39 million worth of DOGE in the last 24 hours, DOGE’s largest sell-off since the 17th of January. This wave of selling suggests that investors may have set take-profit orders at this level. The behavior of this market segment in the coming days could significantly influence DOGE’s price direction. If these investors continue to offload holdings, it would confirm a bearish outlook and increase the chances of DOGE trending lower. However, renewed buying could support an upward move past the $0.2478 resistance zone.

The liquidation Heatmap presents a different scenario. At press time, two major liquidity clusters appeared, with one above and one below DOGE’s current price. The cluster above, between $0.259 and $0.260, contains $11.21 million in sell orders, while the cluster below, between $0.250 and $0.249, holds $11.61 million in buy orders. This setup creates a potential opportunity. If the upper liquidation levels are triggered first, DOGE could retrace to the lower clusters, which may act as a demand zone and push the price higher. Conversely, if DOGE trades into the lower liquidity clusters first, it may rise toward the upper clusters, which would then act as a supply zone. Without strong support beneath the current price, a sustained downtrend could follow.