Dogecoin (DOGE/USD) is down 6% on the day, but traders focus on the medium-term trend, speculating that a rally is still in the making.

Dogecoin price is trading in the green on Wednesday despite a 6% drop in the past 24 hours, as traders remain focused on the meme coin’s medium-term trend.

Crypto trader Trader Tardigrade highlighted that Dogecoin has shifted to an uptrend on the daily chart, forming higher highs and higher lows.

The trader noted that staying above the $0.178 critical support level maintains the uptrend, while $0.164 acts as major support and staying above this will reflect a sideways trend.

A drop below $0.164 could restart the downtrend, requiring Dogecoin to build momentum for breaking the structure again.

Dogecoin has shifted to an uptrend on the daily chart, forming higher highs and higher lows.

Critical support at $0.178 must hold to maintain the uptrend.

Major support at $0.164, staying above reflects a ST sideways trend.

A drop below $0.164 could restart the downtrend. #dogecoin #cryptochart pic.twitter.com/00G00Y310R

— Trader Tardigrade (@TardigradeTrader) January 4, 2024

Crypto chart analyst Ali Martinez highlights that 76.65% of traders on Binance Futures are long on DOGE, further indicating a bullish bias.

76.65% of traders on Binance Futures are long on #Dogecoin $DOGE!

This signals a strong bullish sentiment among traders.

However, with $12.4 mn in DOGE liquidations in the past 24 hours, some positions might be closing.

Who is buying #DeFi tokens?

Well, about 66% of traders on Binance Futures hold LONG positions on …

— Ali Martinez (@ali_speter) January 4, 2024

Coinglass data shows total DOGE liquidations in the past 24 hours at $12.4 million, with $10.9 million in long liquidations.

Meanwhile, Dogecoin Foundation Director Timothy Stebbing explained that a growing DOGE reserve could support broader crypto payments adoption and specifically DOGE.

He highlighted use cases such as mobile payments, point-of-sale (POS) terminals, online shopping integrations and government APIs for payments.

“The more people use crypto to spend money on everyday goods and services, the more likely it is to become a mainstream economic force.”

At the time of writing, Dogecoin is changing hands at $0.1818, up 0.64% in the past 24 hours.