After the price of Bitcoin fell below the $104,000 level over the weekend, the price of Dogecoin was pushed below the $0.2 level once again. This move is understandably shocking to the community as the $0.2 level had held strong for a long time. However, by using the 4-hour order block (OB), a cryptocurrency analyst explained what is happening with the price of Dogecoin, why the decline is occurring, and its next direction.
Dogecoin Has Gone Through A Liquidation
Cryptocurrency analyst Smart Flows, on the TradingView website, pointed out an interesting development on the Dogecoin price chart. This indicates a clear delineation of why the price of this meme coin has fallen below the psychological support level of $0.2 and has dropped to a clean level like a liquidity event.
The cryptocurrency analyst uses the 4-hour order block on the Dogecoin price chart to explain this, starting just above the price level of $0.22. This witnessed liquidity sweeping through the fair value gap (FVG) at the Fibonacci level of 0.5, breaking the support level of $0.20. Smart Flows explains that this move is not emotional but rather resembles a more 'mechanical' move, indicating that it is designed to occur.
The result of this liquidity event is that there is currently a reset of sentiment around the price of Dogecoin, setting the stage for a potential reversal. If this is the case, then Dogecoin may be on the verge of the next big rally above $0.2.
What to Expect Next From Here
According to the cryptocurrency analyst, Dogecoin is currently in the order block on the 4-hour timeframe that is converging with the fair value gap (FVG) above $0.2. This makes the level of $0.20928 the first "important reaction point" and the analyst points out two possibilities for this meme coin here: the price continues to stagnate or the consolidation process begins at this level.
Essentially, the Dogecoin price should be able to overcome the first major challenge at $0.209 before going higher from here. This means that it must complete the clearing of FVG in order to capture the above liquidity. After that, the real test starts at $0.22094, where the next large 4-hour order block lies. The analyst explained that being able to remove FVG would mean that the model continues to be implemented.
However, there is still a possibility that the price of Dogecoin will be rejected before it can surpass the FVG above $0.2. In this case, it may signal the next bearish trend for the altcoin. "If we reject early — that tells me that distribution is starting, and I will prepare for a secondary sweep below $0.18 to retest the deeper 4H OB near $0.16387," the analyst concluded.
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Dogecoin Drops Below $0.2: 4H Block Order Shows Exactly What's Happening
After the price of Bitcoin fell below the $104,000 level over the weekend, the price of Dogecoin was pushed below the $0.2 level once again. This move is understandably shocking to the community as the $0.2 level had held strong for a long time. However, by using the 4-hour order block (OB), a cryptocurrency analyst explained what is happening with the price of Dogecoin, why the decline is occurring, and its next direction. Dogecoin Has Gone Through A Liquidation Cryptocurrency analyst Smart Flows, on the TradingView website, pointed out an interesting development on the Dogecoin price chart. This indicates a clear delineation of why the price of this meme coin has fallen below the psychological support level of $0.2 and has dropped to a clean level like a liquidity event. The cryptocurrency analyst uses the 4-hour order block on the Dogecoin price chart to explain this, starting just above the price level of $0.22. This witnessed liquidity sweeping through the fair value gap (FVG) at the Fibonacci level of 0.5, breaking the support level of $0.20. Smart Flows explains that this move is not emotional but rather resembles a more 'mechanical' move, indicating that it is designed to occur. The result of this liquidity event is that there is currently a reset of sentiment around the price of Dogecoin, setting the stage for a potential reversal. If this is the case, then Dogecoin may be on the verge of the next big rally above $0.2.
What to Expect Next From Here According to the cryptocurrency analyst, Dogecoin is currently in the order block on the 4-hour timeframe that is converging with the fair value gap (FVG) above $0.2. This makes the level of $0.20928 the first "important reaction point" and the analyst points out two possibilities for this meme coin here: the price continues to stagnate or the consolidation process begins at this level. Essentially, the Dogecoin price should be able to overcome the first major challenge at $0.209 before going higher from here. This means that it must complete the clearing of FVG in order to capture the above liquidity. After that, the real test starts at $0.22094, where the next large 4-hour order block lies. The analyst explained that being able to remove FVG would mean that the model continues to be implemented.
However, there is still a possibility that the price of Dogecoin will be rejected before it can surpass the FVG above $0.2. In this case, it may signal the next bearish trend for the altcoin. "If we reject early — that tells me that distribution is starting, and I will prepare for a secondary sweep below $0.18 to retest the deeper 4H OB near $0.16387," the analyst concluded.