Dogecoin (DOGE) fall 55% – But this indicates a price reversal.

The price of Dogecoin (DOGE) coincides with the cryptocurrency market sinking into the red after President Donald Trump posted on the Truth Social platform, igniting tensions over the potential for increased tariffs on China. As a result, the global financial market has experienced a severe crash.

In the past 24 hours, Dogecoin has been one of the hardest-hit cryptocurrencies, with a total market capitalization drop of around 6 billion dollars.

The Collapse of DOGE Price

According to the data from the chart, the price of DOGE has decreased by more than 55% since Trump's post was published, hitting a yearly low of around $0.09. This comes after DOGE continuously remained below its yearly high until that point.

Dogecoin has broken the price level it maintained since mid-February. At the time of writing, the price of DOGE is stabilizing below the $0.20 threshold, with the Relative Strength Index (RSI) registering an oversold level of 34.

Source: TradingViewIf the current price levels are maintained, Dogecoin has the potential to recover and break through the resistance level in the range of $0.28 to $0.30. If it surpasses this level, DOGE could aim for the range of $0.48 to $0.50, corresponding to the previous highs in the prior bull market.

However, in the near future, there may be additional price drops or consolidations. Nevertheless, there are signs that this price drop is attracting interest from buyers, with trading volume reaching 11 billion dollars on the charts.

The bears dominate

The CVD analysis of Spot Taker indicates that in the last days of October, sellers still maintained control of the market. This suggests the possibility of further declines in the short term before any signs of reversal appear. However, selling pressure shows signs of weakening.

Source: CryptoQuantThis sell-off could prompt buyers to activate their long positions, which are currently below the current price.

Is this the beginning of a bull market?

According to some analysts, the market may be preparing for a price surge similar to last year. In a post on X, Cephii expressed this view, writing:

"All long positions $DOGE have been liquidated. This is often a sign of the beginning of bull markets..."

The chart clearly shows that long positions have been wiped out, with DOGE stabilizing near the $0.18 level.

With large order clusters sitting below $0.20, especially around the level of $0.179 with $7 million in orders and an additional $6.74 million just below, the price is likely to dip slightly below $0.18 before potentially recovering.

Source: CoinGlassCurrently, the largest concentration area of liquidity clusters is above $0.24, which is the next and most realistic target in the context of the current Dogecoin market.

Mr. Teacher