Dogecoin at Risk of $200 Million Liquidation, But These Holders May Prevent the Drop

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Dogecoin (DOGE) price has recently struggled with momentum, failing to break key resistance levels. As of press time, DOGE is holding at $0.169, just above the crucial support of $0.164.

This stagnation hints at the potential for further declines, but key investors are still holding strong.

Dogecoin Is Facing Challenges

The liquidation map reveals that approximately $216 million worth of long positions could face liquidation if Dogecoin’s price declines to $0.150. This price is not far from its current critical support of $0.164.

If DOGE drops below this level, the liquidation of long contracts could fuel a further sell-off, pushing the price lower. This would likely prompt more bearish sentiment among traders, discouraging new investments in the meme coin.

Moreover, the threat of liquidation looms large as the price hovers near critical support levels. If DOGE continues to weaken, traders may be more inclined to exit positions, exacerbating the downtrend.

Dogecoin Liquidation Map. Source: Coinglass

On the other hand, Dogecoin’s long-term holders (LTHs) seem to be focused on accumulating the asset at its current low price.

The HODLer net position change shows an increasing number of LTHs who are confident in eventual price recovery. As DOGE remains relatively inexpensive, these investors view the current conditions as a potential opportunity for future gains.

This accumulation by LTHs could serve as a buffer against further price declines. Their confidence in Dogecoin’s recovery and long-term potential is helping to sustain the current price levels. If these holders continue to accumulate, it could prevent a drastic drop and even pave the way for a future price rebound.

Dogecoin HODLer Net Position Change. Source: Glassnode

DOGE Price Correction Unlikely

At the time of writing, Dogecoin is trading at $0.169, just above the critical support of $0.164. The altcoin has been unable to break the $0.176 resistance for several days, showing signs of stagnation.

The likely outcome is continued consolidation above $0.164 as investors await a potential catalyst for upward movement.

If Dogecoin manages to breach the $0.176 resistance, it could quickly rise to $0.198, marking a positive shift in sentiment. This would likely encourage more buying activity and help push the price higher.

However, without sufficient momentum, DOGE will remain trapped within its current range, potentially facing further consolidation.

Dogecoin Price Analysis. Source: TradingView

If the price falls below $0.164, it could slip to $0.147 in the coming days, triggering more than $216 million in long liquidations. This scenario would signal a shift toward bearish momentum, invalidating Dogecoin’s bullish outlook.

The coming days will be crucial in determining whether DOGE can recover or continue its decline.

Original Article