Dogecoin in a bearish territory after rejection at massive liquidity zone — Can it regain momentum towards $0.192?

Recent movements of Dogecoin reveal a complex technical scenario following the liquidity sweep in the $0.1837–$0.1839 range. Although the inverted head and shoulders pattern suggested a possible trend reversal, the market reality has been more severe: the price is currently at $0.14, reflecting a sharper correction than initially anticipated. Data shows that this level held over $10 million in accumulated liquidity—a barrier that was finally breached abruptly.

The technical pattern that promised bullish continuation

The inverted head and shoulders setup had formed clearly after several weeks of accumulation, showing three pronounced valleys with the central one being the deepest point. This historical structure often anticipates significant trend reversals. When the price broke the neckline with increasing volume, the signs seemed to confirm renewed risk appetite. However, selling pressure concentrated in the $0.1837–$0.1839 range revealed its true magnitude as cascading liquidations were triggered.

Traders attentive to the liquidation heatmap—data showing where the greatest pressure of positions accumulates—noticed that the zone had attracted an abnormal density of long positions. When DOGE hit that resistance and was violently rejected, the resulting move systematically liquidated those positions, causing the decline we observe now.

The descending channel and the search for the next support

From the maximum of ~$0.1868 down to the base of ~$0.1714, the 1-hour chart traces a descending channel where highs and lows are compressing. This pattern—characterized by parallel descending lines—is typically a structure that precedes bullish breakouts if buyers manage to regain momentum. The key level of the 50-period exponential moving average is around $0.1757, acting as a pivot for any rebound.

With the current price at $0.14, Fibonacci retracements show significant depth: the 0.618 level marks ~$0.1771 and the 0.5 near ~$0.1789. These points would represent zones where the market has historically found support before continuing higher. The RSI, which had fallen to the mid-30s zone, is beginning to recover toward 50, indicating a gradual decrease in selling pressure.

Breakout scenario and price targets

If Dogecoin manages to close a clean 1-hour candle above $0.179–$0.180 with confirming volume, the height of the (~$0.015) channel would project a measured move toward ~$0.195. A more conservative 10% advance from current levels would suggest ~$0.1918, aligning with nearby resistance at $0.1929.

However, the current context presents a challenge: the distance from $0.14 to $0.192 is about 37%, requiring a clear reversal of sentiment and recovery of multiple intermediate supports. The invalidation of the descending setup would occur with a sustained close below $0.171–$0.172, exposing the $0.168 level.

The volatility of recent days underscores the importance of disciplined risk management when trading Dogecoin—movements can be both bullish breakouts or additional corrections depending on prevailing liquidity dynamics.