Dogecoin

Value

would

<p><strong><a href="https://yellow.com/asset/doge">Dogecoin</a> dropped below the $0.20 psychological support level over the weekend, following Bitcoin's decline beneath $104,000 and sparking concerns among investors who had grown accustomed to the meme cryptocurrency maintaining that price floor. Technical analysis <a href="https://www.newsbtc.com/news/dogecoin/dogecoin-price-crash-0-2/">suggests</a> the move represents a calculated liquidity sweep rather than panic selling, according to cryptocurrency analysts tracking the digital asset's price movements.</strong></p>  
<h2 id="what-to-know">What to Know:</h2> 
<ul> 
 <li>Dogecoin fell below $0.20 support level following Bitcoin's weekend decline to under $104,000</li> 
 <li>Technical analysts identify the drop as a "liquidity sweep" through key trading levels rather than emotional selling</li> 
 <li>The cryptocurrency now sits at a critical juncture that could determine whether it rebounds above $0.20 or continues declining toward $0.16</li> 
</ul>  
<h2 id="technical-analysis-reveals-calculated-market-move">Technical Analysis Reveals Calculated Market Move</h2> 
<p>The decline caught many traders off guard, particularly given Dogecoin's sustained defense of the $0.20 level in recent trading sessions. Crypto analyst Smart Flows, writing on TradingView, identified specific technical factors that explain the sudden price movement.</p> 
<p>Using 4-hour order block analysis, Smart Flows traced the decline to a liquidity sweep that began above the $0.22 level. The sweep moved through what traders call a Fair Value Gap at the 0.5 Fibonacci retracement level before breaking the $0.20 support. "This move was in no way emotional and was more of a 'mechanical' move, suggesting it was engineered to happen," the analyst wrote.</p> 
<p>This technical interpretation suggests institutional or algorithmic trading drove the decline rather than retail investor panic. Such moves often precede significant price reversals in cryptocurrency markets. The liquidity sweep has effectively reset market sentiment around Dogecoin, potentially clearing the path for renewed upward momentum.</p> 
<p>The analyst emphasized that the decline followed predictable technical patterns. These patterns frequently signal accumulation phases in digital asset markets.</p> 
<h2 id="critical-price-levels-determine-next-direction">Critical Price Levels Determine Next Direction</h2> 
<p>Dogecoin now trades within a 4-hour demand order block zone that aligns with a Fair Value Gap above $0.20, creating what analysts consider a high-probability reversal area. The $0.20928 level represents the first critical test for any potential recovery, according to Smart Flows' analysis.</p> 
<p>Two scenarios emerge from this technical setup. Either Dogecoin consolidates at current levels before attempting to reclaim $0.20, or the selling pressure continues and pushes the cryptocurrency lower. Success at the initial resistance level would set up a more significant test at $0.22094, where the next major 4-hour order block sits.</p> 
<p>"The Dogecoin price has to be able to beat the first major test at $0.209 before moving higher from here," Smart Flows noted. Clearing the Fair Value Gap would signal that a continuation pattern is developing, potentially leading to sustained gains above the $0.20 threshold.</p> 
<p>However, rejection at these levels could trigger additional downside. The analyst warned that early rejection might indicate distribution is beginning among large holders. Such a scenario could lead to further declines toward $0.18, with a potential retest of deeper support near $0.16387.</p> 
<h2 id="market-context-and-broader-implications">Market Context and Broader Implications</h2> 
<p>The Dogecoin decline reflects broader cryptocurrency market weakness that began with Bitcoin's retreat from recent highs. Bitcoin's failure to maintain support above $104,000 created selling pressure across alternative cryptocurrencies, with meme coins like Dogecoin particularly susceptible to such moves.</p> 
<p>Weekend trading often amplifies cryptocurrency volatility due to lower trading volumes and reduced market participation. The timing of Dogecoin's breakdown suggests institutional traders may have deliberately targeted technical levels during this period of reduced liquidity.</p> 
<h2 id="closing-thoughts">Closing Thoughts</h2> 
<p>Dogecoin's drop below $0.20 represents a technical liquidity sweep that has reset market sentiment around the popular meme cryptocurrency. The digital asset now faces critical tests at $0.209 and $0.22 that will determine whether it can reclaim the $0.20 level or continues declining toward deeper support near $0.16.</p>

Technical Analysis Shows Dogecoin's $0.20 Break Was Calculated Liquidity Sweep

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