Dogecoin (DOGE) Retraces Sharply, but There's Potential for a Bounce. Here's What to Watch.

Dogecoin, like most altcoins, has been experiencing a sharp retracement in recent days. But before panicking, let's zoom out.

Dogecoin (DOGE) has been experiencing a sharp retracement in recent days, as most altcoins have. While this might spark panic in some, it's important to zoom out and get the bigger picture.

As the saying goes, “the trend is your friend.” On the daily chart, we can clearly see a strong bullish impulse that has been unfolding since December 2022. This trend is still intact despite the recent pullback.

After such a sharp move, some retracement was expected, and we can see that the price has already respected a key demand zone. This potential for a bounce is further emphasized by the fact that the last H2 bearish impulse is still pending.

On H2, Dogecoin is still trading in a bearish structure. However, there are significant levels of liquidity to be collected above, and the price could hit the supply zone, which might trigger a reaction lower.

On M15, we can observe a bullish structure shift just happened, which could drive a retracement into the last H2 bearish impulse, setting the stage for a potential move lower toward the H2 supply zone.

If we go even lower, on M5, we can see a demand zone that could be interesting to watch. If the price reacts here, it might fuel a push toward the liquidity levels above. However, as always, there are no guarantees.

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It's important to note that no one can predict the market with 100% certainty. Dogecoin might respect these levels or completely ignore them. That's why risk management is crucial. Keep an eye on the structure, wait for confirmations, and let the market do its thing.