- DOGE price has dipped to collect liquidity but hasn’t fully reached key demand zones yet
- A potential move upward could target liquidity above, presenting selling opportunities at supply zones
- Patience is critical—waiting for price alignment with demand or supply zones can lead to better trading outcomes
In yesterday’s article, we highlighted how the DOGE price—and the broader crypto market—has been on a downward trajectory, targeting liquidity resting below.
This movement is part of a typical market cycle where price chases areas of liquidity. But here’s the thing: while DOGE has dipped to collect some of this liquidity, it hasn’t cleared all of it.
So, what’s next for Dogecoin? Should we wait for the price to reach a deeper demand zone, or is there an opportunity to sell at a higher supply zone? Let’s break it down.
What Is a Demand Zone?
A demand zone is an area on the chart where buyers historically stepped in with strong momentum, pushing the price upward. These zones act as support levels, and when revisited, they can trigger similar buying reactions.
At the moment, the DOGE price hasn’t reached the lower demand zone I’ve marked. For traders like me—those who prioritize patience—it might be wise to wait. Rushing into the market prematurely often leads to unnecessary losses.
Supply Zones and Liquidity Above
If DOGE doesn’t drop further to the demand zone, there’s another scenario to consider. The price could rise to a supply zone, which is the opposite of a demand zone. A supply zone is where sellers dominate, creating downward pressure.
Interestingly, there’s still liquidity resting above DOGE’s current price level.
This means we could see an upward move to collect that liquidity before any further bearish action. If the price reaches the supply zone and leaves liquidity behind, it could present a solid selling opportunity.
Patience Pays in Trading
Here’s a hard truth about trading: the market doesn’t owe us anything. It moves unpredictably, often defying even the most logical analysis. While the scenarios I’ve outlined are possible, they’re far from guaranteed.
As a trader, I’ve learned to embrace patience. It’s better to wait for the price to align with your strategy rather than acting out of impatience or fear of missing out. Remember, the market rewards those who wait for the right setup.
DOGE Price Prediction: What Could Happen Next?
- DOGE could drop further, reaching the demand zone below and potentially triggering a bullish reaction.
- Alternatively, the price could move up to the supply zone, collecting liquidity above before reversing.
- Or, the market could surprise us entirely—because crypto is unpredictable like that.
Final Thoughts
For now, my strategy is simple: wait. Whether DOGE reaches the demand zone below or climbs to the supply zone above, patience is key. This approach not only minimizes risk but also ensures that you’re making informed decisions based on clear price action.
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
