Despite Bullish Sentiment, Dogecoin (DOGE) Price Faces Resistance from Long Liquidations and Technical Levels

The sentiment surrounding Dogecoin (DOGE) is largely bullish, with a significant portion of traders betting on the cryptocurrency’s price rise.

Dogecoin (DOGE) has seen better days, slipping by 7.96% over the last 24 hours at the time of writing. The cryptocurrency is currently trading at $0.1809.

On Binance Futures, traders are largely bullish on Dogecoin, with 76.65% of traders holding long positions. This optimism stems from the cryptocurrency’s recent performance, having risen from lows of $0.1388 to reach highs of $0.2548.

However, despite this bullish sentiment, the market is also facing heightened risks of volatility, largely due to the dominance of long positions and key technical resistance levels that could determine the cryptocurrency’s next move.

As of the latest data, about $5.53 million worth of long positions have been liquidated, compared to only $421,680 in short positions. This suggests that the market is currently vulnerable, with long traders facing forced exits as the price struggles to rise.

At the same time, the cryptocurrency is encountering resistance at the $0.208 level, which could present an immediate challenge for traders who are expecting a surge in the cryptocurrency’s price.

If this support breaks, then traders could see their positions liquidated and the cryptocurrency could fall to the next support level at $0.158.

If this resistance breaks, then traders could see the cryptocurrency rise to the next resistance level at $0.258.

Moreover, the daily active addresses and transaction count remain quite low, with 47,577 active addresses and just 14,020 transactions recorded on March 28, 2025.

This lack of user engagement could limit Dogecoin’s ability to sustain long-term price growth. Without a significant increase in demand or network activity, Dogecoin might struggle to break out of its current price range, even with the bullish futures market sentiment.

Liquidation Data

The cryptocurrency is also still struggling to recover from the recent market downturn, which began in December 2024 with the collapse of FTX.

This downturn saw crypto prices fall sharply, and many traders, particularly those who had leveraged their positions, faced significant losses and liquidations.

As of the latest data, about $5.53 million worth of long positions have been liquidated, compared to only $421,680 in short positions.

This suggests that the market is currently vulnerable, with long traders facing forced exits as the price struggles to rise.

The cryptocurrency is currently testing a critical support zone at this level.

If this support holds, then traders could see DOGE rise past resistance at $0.208, signaling the potential for a rally.

However, if the price falls below this support, then the cryptocurrency could experience further declines.

Technical Analysis

Dogecoin is currently trading at $0.1809 and has seen a 7.96% decline in the last 24 hours.

The cryptocurrency is down by 30.66% over the last seven days, but traders will be hoping that the cryptocurrency can recover from its recent losses.

The cryptocurrency is currently struggling to break out of a key technical resistance level at $0.174.

This level has been a point of contention for the cryptocurrency, as it has seen the cryptocurrency stall on multiple occasions.

If this support breaks, then traders could see the cryptocurrency fall to the next support level at $0.158.

However, if this resistance breaks, then traders could see the cryptocurrency rise to the next resistance level at $0.208.

A break above this level could pave the way for a rally to the final resistance level at $0.258.

Market Analysis

The cryptocurrency has been struggling in recent times, as traders have pulled back from their optimistic positions.

This is evident in the cryptocurrency’s MVRV (Market Value to Realized Value) ratio, which is currently at 0.546.

The MVRV ratio compares the cryptocurrency’s market value to its realized value, which is the average price at which coins last moved on-chain.

An MVRV ratio of less than 1 suggests that the cryptocurrency is undervalued, while a ratio of more than 1 suggests that it is overvalued.

The cryptocurrency is currently valued below its realized value, which suggests that traders are not overly optimistic about the cryptocurrency’s prospects.

This overvaluation might make it difficult for Dogecoin to rise significantly without a corresponding increase in demand or investor interest.

Without fresh catalysts or a shift in market sentiment, Dogecoin may face resistance at higher price levels, and its price may continue to consolidate or experience downward pressure.