Dogecoin Price Drops Below $0.2 Following Liquidity Sweep
Following Bitcoin's decline below $104,000, Dogecoin's price fell below $0.2, a significant psychological support level. Analyst Smart Flows attributed this drop to a liquidity sweep, indicating that the movement was mechanical rather than emotional.
Key Insights on Dogecoin Price Movement
- The price decline occurred after a liquidity sweep through the Fair Value Gap at the 0.5 Fibonacci level, breaking the $0.2 support.
- A reset in market sentiment may set the stage for a potential reversal above $0.2.
Future Expectations
- Dogecoin is currently in a demand order block zone with a key reaction point at $0.20928.
- The price must clear this level to facilitate a possible upward movement.
- If it fails to clear the Fair Value Gap, further downtrends could occur, potentially testing levels below $0.18.
