Peter Smith
⬤ Dogecoin has stopped falling after it slid just far enough to collect the stop loss orders that had piled up under the old lows - on the daily chart the quote now rests on a clearly drawn support area. Following that sweep, DOGE is parked next to a level that normally draws traders who want an early long position.
⬤ The chart shows that earlier in the year Dogecoin formed upward looking patterns - a rounded cup and a short continuation stretch - before the wider trend rolled over. Once the break occurred, price sliced through the former lows and picked up the orders resting under the range. The down move lines up with the area labelled “liquidity sweep”; after it was done, the decline halted and the market flattened out.
⬤ At the moment the coin drifts sideways on top of that support and has not posted new lows. No clear buying thrust has appeared - yet the pace of selling has slowed. This quiet spell right after the liquidity grab is common - once the short term positions are forced out, the market pauses to decide its next direction.
⬤ The pattern keeps Dogecoin on trading screens. If the level holds, a relief rally can unfold during the next few weeks. If price drops through, additional weakness is expected. For now DOGE is locked in a narrow band at support - the decisive move will depend on whether buyers step in after the sweep.
Peter Smith
