Bitcoin has made a swift recovery after temporarily dropping below $80,000 on Tuesday. The leading cryptocurrency is now approaching the $81,000 level.
Dogecoin (DOGE) is trading in the green on Wednesday after experiencing two consecutive days of losses earlier this week.
This recovery aligns with a surge in short liquidations over the last 4 hours across the crypto market, hinting at a potential upside shift.
Dogecoin should clear above its 200-day Exponential Moving Average (EMA) at $0.1224 for further gains.
Dogecoin rebounds amid early signals of a bullish flip
DOGE is the second-best performer among the top 10 cryptocurrencies by market, behind Binance’s BNB coin.
It is up by 2% in the last 24 hours and is now trading above $0.11 per coin.
The rally comes as the crypto market’s risk-on sentiment improved on Wednesday as short-term bulls began to dominate derivatives markets.
Data obtained from CoinGlass revealed that total liquidations of $240 million over 24 hours are driven by $180 million in long liquidations, consistent with Tuesday’s decline.
However, in the last 4 hours, short liquidations accounted for $17 million of the $21 million total, suggesting a short-term rebound.
These brief recoveries often follow overselling, and with Bitcoin holding above $80,000 during Trump’s visit to China, the broader market could experience a prolonged recovery.
Furthermore, the DOGE futures Open Interest (OI) shows a minor recovery to $1.7 billion, indicating that buyers retain demand despite the previous day’s wipeout.
Finally, a positive funding rate of 0.0057% confirms bullish sentiment, with buyers building long positions at a premium in anticipation of further gains.
Dogecoin price forecast
The DOGEUSD 4-hour structure is currently bullish as Dogecoin is trading above its 50-day and 100-day Exponential Moving Averages (EMAs) at $0.1024 and $0.1064, respectively.
This suggests a mildly bullish bias among traders.
The short-term moving averages are still in a mild uptrend, hinting at a potential bullish crossover, while the price remains capped below the 200-day EMA at $0.1248.
The momentum indicators also suggest that the buyers remain in control.
The Relative Strength Index (RSI) hovers above the midline around 62, hinting at lingering upside pressure.
Meanwhile, the Moving Average Convergence Divergence (MACD) just slipped marginally below zero, suggesting momentum is losing some traction after the recent advance.
If the bulls remain in control, they would encounter initial resistance at the $0.1161 supply zone and the 200-day EMA at $0.1248.
A daily candle close above this level would be needed to unlock a stronger bullish extension, targeting the $0.1500 round figure.
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However, if the sellers push harder, immediate support would emerge at the 100-day EMA near $0.1064, with the 50-day EMA at $0.1024 providing a secondary floor.
Failure to defend these levels could see DOGE drop lower and weaken the near-term constructive tone, exposing a deeper corrective pullback.
