Dogecoin At Major Breakout Point As Liquidity Bottoms, Says Analyst
Kevin, a crypto analyst, presented a chart comparing the Global Liquidity Index with Dogecoin's price action. The Global Liquidity Index has been in a downward channel, while Dogecoin has broken out and retested a long-term trend line from its 2021 price surge. Dogecoin rose from under $0.01 in 2020 to approximately $0.74 in 2021, later stabilizing around $0.15, which aligns with significant support levels. The 0.382 Fibonacci retracement level at approximately $0.14225 is highlighted as a critical area. The Global Liquidity Index's decline indicates tighter financial conditions, impacting risk-on assets like Dogecoin. Historical data shows that Dogecoin's major rallies occurred during periods of rising liquidity. The convergence of support lines, Fibonacci levels, and liquidity trends suggests potential for a future Dogecoin rally, contingent on changes in the Global Liquidity Index. At press time, Dogecoin was priced at $0.15723.
