After a breakthrough from a descending channel on its daily chart, Baby Doge Coin (BABYDOGE) experienced a remarkable recovery, surging by more than 115% in less than three days from the $0.00000000089 support level following a prolonged period of bearish pressure.
Currently, BABYDOGE is trading around $0.0000000018, struggling to sustain the momentum gained during the recent upswing.
Recent price movements have seen the meme coin rise above its 200-day EMA, indicating a shift in favor of the bulls.
Potential Consolation Following the Breakout for Baby Doge Coin Price
The sharp uptrend has placed Baby Doge in a zone of high liquidity, suggesting a possible consolidation phase between $0.0000000015 and $0.000000002. A probable pullback towards the $0.0000000015 support level could be imminent, particularly if profit-taking activities increase.
A successful consolidation above $0.0000000015 may pave the way for a retest of the $0.000000002 resistance level, with a sustained breach potentially pushing the price target towards $0.0000000024 in the next upward move.
If sellers regain control, the price could retest the $0.0000000013 support level around the 200 EMA before attempting another upside move.
The MACD indicator displays the MACD line above the signal line following a bullish crossover, reflecting the recent breakout momentum but also suggesting a possible short-term slowdown as the rally loses traction.
It is important to note the current high-liquidity zone, indicating a likelihood of consolidation or a minor retracement in the near term.
Derivatives Data Insights…
Derivatives data reveals a long/short ratio of 0.6166 over the last 24 hours, indicating a preference for short positions on exchanges like Binance and OKX.
This suggests traders are exercising caution, foreseeing a potential retracement. However, liquidation data shows a few long positions liquidated in the past 12 hours, with no significant short liquidations observed.
If buyers can uphold the $0.0000000015 support level, Baby Doge might aim for $0.000000002 and potentially break higher towards $0.0000000024. Conversely, a clear break below $0.0000000015 could dampen the bullish momentum, leading to consolidation.
Traders are advised to closely monitor the MACD and derivatives data to assess whether the bulls will retain control or if the bears are gearing up for a comeback.