Dogecoin is at risk of liquidation of 200 million USD, but holders can prevent the fall.

Dogecoin (DOGE) has recently faced difficulties with its upward momentum, unable to break through key resistance levels. As of now, DOGE is holding at $0.169, just above the important support level of $0.164.

This stagnation refers to the potential for further decline, but investors are still trying to hold their ground.

Dogecoin is facing many challenges

The liquidation map shows that approximately 216 million USD worth of Long positions may face liquidation if the price of DOGE falls to $0.150. This price is not far from the current important support level of $0.164.

If DOGE falls below $0.150, the liquidation of Long contracts could trigger the next sell-off, dragging the price lower. This may lead to a more pessimistic sentiment, discouraging new investments in this memecoin.

Furthermore, the liquidation threat is present as prices hover near important support levels. If DOGE continues to weaken, traders will tend to exit their positions, exacerbating the downward trend.

Dogecoin liquidation chart | Source: CoinglassOn the other hand, long-term Dogecoin holders (LTH) seem to be focused on accumulating assets at the current low price.

The change in the net position of HODLers indicates that more and more long-term holders are confident in the recovery. Since DOGE is still relatively cheap, these investors view the current conditions as a potential opportunity for future profits.

The accumulation of LTH can act as a buffer against the next downturn. Their confidence in the recovery and long-term potential of Dogecoin is helping to maintain the current price.

If holders continue to accumulate, it could prevent a sharp decline and even pave the way for a price recovery in the future.

The change in the net position of Dogecoin HODLers | Source: Glassnode## DOGE is unlikely to correct

As of now, DOGE is trading around $0.169, slightly above the significant support level of $0.164. This altcoin has been unable to break the resistance level of $0.176 for several days, indicating signs of stagnation.

The possible outcome is that DOGE will continue to consolidate above $0.164 as investors await potential catalysts for a price increase.

If it surpasses the resistance level of $0.176, DOGE could quickly rise to $0.198, marking a positive shift in sentiment. This could encourage more buying activity and help push the price higher.

However, without sufficient momentum, DOGE will remain stuck in the current range, potentially facing the next consolidation phase.

DOGE Price Analysis | Source: TradingViewIf it drops below $0.164, DOGE could slide down to $0.147 in the coming days, resulting in over $216 million in liquidations of Long positions. This scenario would signal a bearish shift, undermining the bullish outlook for the memecoin.

The coming days will be a very important time in determining whether DOGE can recover or continue to decline.

You can check the price of DOGE here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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Viet Cuong

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