"Dogecoin (DOGE) Price Surges 16.4% Ahead of $3.8M Liquidation Event"

Key Insights

* The crypto market saw heightened volatility this week, particularly affecting Dogecoin price.

* A total of $3.8M in DOGE positions got liquidated on April 24.

* After a turbulent period, Dogecoin price showed signs of recovery.

Cryptocurrency prices slid earlier in the week with macroeconomic news putting pressure on risk assets. The price of DOGE tumbled by 10% to $0.1809 as trading volume decreased.

Earlier in the week, the meme coin experienced a 16.4% surge.

Dogecoin Price Recovers After $3.8M Liquidations

The crypto market has been electric this week, and Dogecoin hasn’t been spared from the volatility. Data from Coinglass shows a massive $3.8M in DOGE positions got liquidated, while the entire market struggled to rise higher on account of Trump coin surging.

96% of those liquidations were long positions that got wiped out as the price of DOGE came tumbling down.

When the market sees this kind of action, it can either lead to a deeper dip or a quick bounce if the bulls step in to defend key levels.

True to this, after hitting a low of $0.1697, DOGE price is up 4.1% to its current price today. Price liquidations like this often signal high volatility, and for DOGE, it’s a sign that traders were either over-leveraged or panicking hard.

Analyst: “Millionaires Will Be Made” By DOGE

Prominent analyst Trader Tardigrade has predicted that Dogecoin’s recent price action shows signs of a 600% potential bullish reversal if it can break and hold above $0.1926.

This level has been a battleground for bulls and bears, and if it holds, DOGE could make a run for higher ground. Alan forecasted that Dogecoin price would likely jump 600% to $0.93, seeing as it soared 200% and 400% in its previous major rallies.

However, Alan also warned that if this support fails, DOGE might slide down to $0.13909.

What’s more, Bitguru, another renowned crypto analyst, also noted that Dogecoin’s trading volume spiked by 40% this week, hitting $2.6B in a single day. That’s a lot of action for DOGE, and high volume often means big players are stepping in. Could this be a sign of accumulation before a breakout?

DOGE Chart Analysis: Double Bottom Or Double Trouble?

Right off the bat, the 1-day DOGE/USD chart, the DOGE price appears to have been consolidating after a nasty drop from its high of $0.4834 late last year—a 62% correction.

The chart shows a textbook double bottom pattern forming around the $0.1543 level, which is key support. A double bottom is a bullish reversal pattern that looks like a “W” and often signals that the price has found a floor and is ready to rise again.

Dogecoin price action tested this level twice in March and April, and both times, the bulls held their ground against bears. Currently, DOGE price is headed to test the $0.1962 resistance, which also forms the neckline of the double bottom.

If this pattern plays out, DOGE price could push back toward the resistance zone around $0.2492 and potentially challenge the next big level at $0.48, which also marks the previous high.

If price faces rejection at $0.1926 and bears take control, they could push the price back to $0.1543 or lower to $0.1298.

The relative strength index (RSI) at 59.01 looks neutral-to-bullish, so no major overbought or oversold signals yet. The moving average convergence/divergence (MACD) indicator also remains bullish, meaning more upside pressure is still in play for the bulls.

Can Dogecoin Price Score 38% Amid Liquidations?

Despite the $3.8M liquidation event on April 24, DOGE traders were not spooked. Data from Coinalyze shows Open Interest increased 5% in the last 24 hours alongside price. When this happens, it signals that traders are entering long positions.

The double bottom on the chart gives some hope for a bullish reversal. But the overhead resistance levels are casting some doubt on that idea. If DOGE can break above the $0.1926 with strong volume. It might see a push toward $0.2492 or even $0.4834 in the coming weeks. But if the bears win and that $0.19