Dogecoin Price Teeters Near Critical Support as $200M in Liquidations Loom—But Long-Term Holders Stay Confident

Dogecoin (DOGE), the popular meme-inspired cryptocurrency, is facing a crucial moment as its price hovers just above a key support level. Currently trading at $0.169, DOGE is struggling to gain upward momentum, having failed to break the resistance barrier at $0.176 for several days. This stagnation is raising concerns among traders about a potential downside move.

$200 Million in Liquidations at Stake

Market data indicates that approximately $216 million in long positions are at risk of liquidation if Dogecoin drops to $0.150. This level sits not far below the current support of $0.164, making it a critical threshold for the asset.

Should the price fall below this support, a cascade of liquidations could occur, amplifying selling pressure and potentially accelerating a bearish trend. Traders may be quick to exit their positions in such a scenario, which would further weigh on DOGE's short-term outlook.

Long-Term Holders Signal Optimism

Despite the looming threat of liquidation, long-term holders (LTHs) are showing resilience. On-chain data reveals a positive net position change, signaling that these seasoned investors are accumulating DOGE during the current price dip.

This continued accumulation could act as a stabilizing force for the token. By absorbing sell pressure and showing confidence in Dogecoin’s future, long-term holders may help prevent a deeper decline. Their actions suggest a belief in eventual recovery, which could support a price rebound in the medium to long term.

What’s Next for Dogecoin?

For now, Dogecoin appears to be consolidating above $0.164 as the market awaits a potential catalyst to break the stalemate. A successful move above $0.176 could trigger a rally toward $0.198, potentially shifting market sentiment to bullish and attracting fresh capital into the asset.

Conversely, if DOGE fails to maintain support at $0.164, a drop to $0.147 may follow, potentially triggering the liquidation of over $200 million in long positions. This would likely usher in a wave of bearish sentiment and invalidate the current bullish outlook.