Dogecoin faces a USD 500 million liquidation test while the price points to a USD 0.2 recovery

Dogecoin is going through a volatile phase, since its price is just above the key support levels.

After reaching a local maximum near USD 0.2, Doge has lay down, which generates new doubts about the memecoin strength in the current market.

While the main cryptocurrencies such as Bitcoin and Ethereum continue to consolidate, Dogecoin has struggled to maintain the impulse.

The asset runs the risk of erase almost all profits of the last 30 days unless you can break the critical technical barriers and absorb significant short liquidations, estimated at more than USD 500 million.

The next few days could determine whether Doge recovers or slides towards a deeper correction.

The USD 0.165 area is critical

The price of Dogecoin has remained close to a key liquidation zone in USD 0.165, where the leverage of traders has accumulated above the USD 500 million. This threshold is considered a crucial point for a possible Squeeze Short.

Fountain: Coinmarketcap

To break up, it is possible that the price must fall below this level to trigger settlements, which could force the exit of short positions.

Such movement could clear the way for a stronger rebound and extend the upward trend.

This could allow the bullies to point to a return to USD 0.18 and eventually try USD 0.2.

Technical signals are still weak

Technically, Dogecoin’s prospects are still weak. After not being able to stay above its ascending trend line, Doge has experienced sustained bearish pressure.

The conversion of the cloud Ichimoku is acting as strong resistance, and there are still no indications of a bullish crossing.

Meanwhile, the stochastic RSI has been reversed after testing the average levels, which underlines the growing influence of the bearish feeling.

Doge is expected to test the support at $ 0.162, a level below the liquidation zone of $ 0.164.

However, not maintaining this support could deepen the fall and make traders reassess the long -term viability of memecoin.

0.2 dollars in 2025?

Although Dogecoin reached up to $ 0.2 earlier this year, the question now is whether it can maintain those levels or continue rising in 2025.

For this to happen, the Token must establish a constant bullish impulse, exceed resistance levels and attract a renewed interest of investors.

This seems like a challenge given its current technical weakness and the absence of strong bullish signals.

Even so, market volatility could favor sudden movements in any direction. If the expected Short Squeeze occurs after trying the USD 0.162, Doge can recover towards USD 0.18 and USD 0.2.

But unless the general conditions of the market improve and the feeling changes decisively, reaching the mark of 0.5 dollars in 2025 seems increasingly unlikely according to current data.