The crypto market has seen the largest leverage flush out since April 2021 yesterday, December 9, as reported earlier today. Amidst the market shakeout, Dogecoin (DOGE) is one of the altcoins which is displaying significant signs of strength. In a post on X, crypto analyst CRG (@MacroCRG) argues that the DOGE price is showing “incredible” signs of resilience compared to the broader altcoin market.
Here’s Why Dogecoin Looks ‘Incredible’
Despite the market downturn, Dogecoin managed to maintain the most crucial support level. CRG shared the below chart and commented, “DOGE looks incredible. Whole market shat itself but it barely flinched + didn’t break structure. Now funding has completely reset and a ton of OI has been washed out. Won’t be long until this is trending hard again IMO.”
The chart reveals several critical insights that support his optimistic outlook for DOGE. Firstly, Dogecoin maintained a crucial uptrend line in the 4-hour chart (DOGE/USDT). This trend line has acted as a dynamic support level which the Dogecoin price has touched but not fallen below on three separate occasions since mid-November.
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Each touch of this trend line triggered a rebound for the Dogecoin price, suggesting strong buyer interest at these levels. This alignment with the uptrend line is crucial because it indicates not only support but also growing confidence among investors each time the price dips to this line and subsequently recovers.
Resistance, on the other hand, formed near the $0.47 mark. This level has been tested multiple times, and each attempt to break through has been met with resistance. The repeated tests of this resistance level without a breakthrough could typically suggest a consolidation phase, potentially building up for a stronger move upward if the market sentiment shifts positively.
Furthermore, the chart shows a notable reduction in open interest in stablecoin-margined contracts. According to Coinglass data, $86.29 million in DOGE long positions were liquidated on December 9, the highest since the bull run of 2021.
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This reduction in open interest presents a major ‘washout’ of speculative positions, typically viewed as a market reset where weaker hands exit, and the excess leverage is reduced. Notably, this cleansing of market participants could…
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