- Baby Doge’s impressive recovery has placed the meme coin above the major moving averages.
- The memecoin was now in a relatively high liquidity zone, indicating opportunities for short-term consolidation in the newly found oscillation range.
Baby Doge Coin (BABYDOGE) recently staged an impressive recovery after breaking out of a descending channel on the daily chart. After months of sustained bearish pressure, the memecoin surged more than 115% in less than three days after recovering from the $0.00000000089 support.
At the time of writing, BABYDOGE was trading around $0.0000000018, having struggled to maintain the momentum it built during the recent surge.
The price action recently caused the meme coin to jump above its 200-day EMA, indicating that the bulls have regained control.
Baby Doge Coin Price Prediction: Will Consolidation Follow the Breakout?
Source: TradingView, BabyDoge/USDT
The recent sharp recovery has placed Baby Doge in a high liquidity zone, where some consolidation between $0.0000000015 and $0.000000002 could be expected. A likely pullback to the $0.0000000015 baseline could be in the offing, especially if profit-taking occurs.
If Baby Doge manages to stabilize above $0.0000000015, a retest of the $0.000000002 resistance level could follow shortly afterwards. A sustained close above this resistance could allow bulls to target $0.0000000024 on the next leg.
However, if sellers regain control, the price may revisit the $0.0000000013 support level near the 200 EMA before making another upside attempt.
The MACD indicator showed that the MACD line is above the signal line after a bullish crossover. This momentum shift was consistent with the recent breakout, but could also indicate some near-term cooling as the rally appears to be losing steam.
It is also worth noting that at the time of writing, the price was in a high liquidity zone, where consolidation or a small retracement could be likely.
Derived data show…
Source: Coinglass
The long/short ratio stood at 0.6166 over the past 24 hours, indicating a stronger preference for short positions on exchanges such as Binance and OKX.
This suggested traders were cautious and possibly anticipating a near-term pullback. However, the liquidation data showed that some long positions were stretched in the last twelve hours, while no significant short liquidations were observed.
If buyers manage to defend the support at $0.0000000015, Baby Doge could target $0.000000002 and possibly break higher towards $0.0000000024. On the other hand, a decisive break below $0.0000000015 could slow the bullish momentum and bring back consolidation.
Traders should keep a close eye on MACD and derivatives data to gauge whether the bulls will maintain their lead or if the bears are about to make a comeback.
