Key Points:
- Dogecoin, following a bullish Displacement, has encountered selling pressure at the edge of the Unicorn level and is currently in a ranging phase focused on liquidity hunting;
- On the 4-hour timeframe, the $0.1065 to $0.1128 range (based on the 50% Fibonacci and OTE) represents a key reaction zone; a price entry into this range accompanied by CHoCH can serve as a trade entry trigger;
- The H4 structure indicates that despite attempts to break the structure, price has failed to establish acceptance and is forming a Lower High; however, the recent stop hunt signals relative weakness among sellers;
- On the 1-hour timeframe, Double Top liquidity on the buy side and Double Bottom liquidity on the sell side are clearly identifiable; the probable scenario involves collecting Buy Side Liquidity followed by a bearish move toward the 4-hour FVG;
- From a sentiment perspective, the market remains in Extreme Fear territory; this condition is typically associated with liquidity-driven moves and deceptive volatility. Potential approval of the Clarity Bill could act as a catalyst for new liquidity inflows and a shift in bias;
- Until a decisive structural break occurs on key timeframes, scenarios remain conditional, with primary focus on price reactions to liquidity clusters and the quality of candle closes.
On February 21, Dogecoin, following a bullish Displacement move in line with the previous scenario, reacted with strong momentum to the proximal edge of the Unicorn range and subsequently faced selling pressure.
The market is currently in a ranging phase, with primary focus on Buy Side Liquidity collection and reactions to Fibonacci Retracement zones. Meanwhile, sentiment remains in Extreme Fear territory, which may significantly influence liquidity behavior and momentum.
Dogecoin Analysis on the 4-Hour Timeframe (H4)
On the 4-hour timeframe, price initiated a sharp bullish move but, after a decline, entered a compression or Consolidation phase. Within this range, Buy Side Liquidity is clearly visible.
Based on the Fibonacci Retracement tool and the Optimal Trade Entry (OTE) range, the potential target of the price move is defined within the following zone:
- The 50% Fibonacci level at $0.1065;
- Up to the $0.1128 range.
If price enters the OTE range and simultaneous weakness appears in the bullish trend, a Break of Structure or Change of Character (CHoCH) can be considered as an entry trigger. In this case:
- The stop loss is placed behind the market swing target zone;
- Targets are defined based on liquidity levels.
From a Price Action perspective, price attempted to break the structure but failed and is currently forming lower highs. The use of a Liquidity Deception pattern and a Stop Hunt caused price to enter the gap zone and continue with bullish momentum; a development that indicates weakness in the bearish trend and an increase in aggressive buying behavior.
Dogecoin Analysis on the 1-Hour Timeframe (H1)
On the 1-hour timeframe, Smart Money and ICT-style traders can utilize the Liquidity Detection indicator to identify liquidity absorption levels.
These levels include:
- Double Top on the buy side;
- Double Bottom on the sell side;
- Horizontal liquidity levels.
It is observed that price has consistently moved toward liquidity zones, collected them, and then returned to its dominant trend. Under current conditions:
- On the buy side, a liquidity line and a Double Top range are identifiable;
- On the sell side, a Double Bottom range is present.
The probable scenario is that price first collects the Double Top liquidity, then, under selling pressure, enters the Double Bottom zone while simultaneously filling the 4-hour Fair Value Gap (FVG), which is visible on the 1-hour timeframe.
Dogecoin Sentiment Analysis
Market sentiment analysis indicates that the market remains in an Extreme Fear condition. This reflects investor caution and reduced risk appetite.
However, if the “Clarity” Bill is approved, there is potential for an increase in positive sentiment and the entry of new liquidity into the market, which could drive price toward higher levels. Until then, the market remains in a ranging condition and tends to gravitate toward liquidity clusters.
Conclusion
Dogecoin, within its current structure, is in a ranging phase with a tendency toward liquidity hunting. The $0.1065 to $0.1128 range, based on Fibonacci and OTE, is identified as a key reaction zone, and the 0.879 level is considered a liquidity target.
The recent bullish momentum indicates relative weakness among sellers; however, until a decisive break of market structure occurs, scenarios remain conditional and dependent on price behavior within liquidity zones.
