- DOGE recently hit an extreme supply zone and is now retracing toward lower liquidity levels
- Two key demand zones on M30 could trigger a reaction, but confirmation is needed
- Liquidity on both sides means volatility ahead—watch for structure shifts on lower timeframes
In our last Dogecoin analysis, we discussed how DOGE was accumulating liquidity on both sides—above and below.
But what does that mean exactly? If you’re new to my analysis, let me break it down.
Understanding Liquidity and Why It Matters
Liquidity is what moves the market.
It’s the collection of stop-loss orders and pending buy or sell orders placed by traders.
When price accumulates liquidity on both sides, it means that sooner or later, a strong move will occur to grab that liquidity before the next big trend is established.
Back then, we were watching a key supply zone, but instead of reacting there, DOGE went higher—to an extreme H2 supply zone.
This was significant because it was the origin of a strong downward move and had left imbalance behind—gaps in price action that often get filled before a trend continues.
Dogecoin’s Current Price Action
Now, DOGE is retracing downward, heading towards the liquidity on the other side. Below, we have two key demand zones on the M30 timeframe that could trigger a reaction.
What should traders watch for?
A structural shift on lower timeframes (M1, M3, or M5) would give a stronger confirmation of a potential bounce.
If you plan to enter a trade directly at the demand zones, managing risk is key—protect your position as soon as you see a reaction.
As always, the market can move in unexpected ways. These are possible scenarios, but nothing is ever 100% certain. Trade smart.
