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Dogecoin (DOGE) is in a consolidation phase after experiencing a strong downtrend, indicating that the cryptocurrency is at a critical juncture. A crypto expert’s technical analysis suggests that while Dogecoin’s recent uptrend could continue, traders should remain cautious due to the threat of a false breakout.

Dogecoin Price Rally Or False Breakout? 

According to TradingView crypto analyst, ‘EliteFxAcademy_CRYPTO,’ the Dogecoin price is currently consolidating between key zones, indicating that a potential breakout may be on the horizon. After witnessing a severe price decline, Dogecoin has been trading within a defined range on the 4-hour chart, with support levels around $0.158 – $0.165 situated around the lower zones to prevent further breakdowns. 

The analysis revealed that Dogecoin’s downturn has transformed into a consolidation phase, where the cryptocurrency is stabilizing and possibly preparing for another leg up. Additionally, the TradingView expert shared critical resistance areas between $0.175 and $0.18, found in the upper zones, that serve as a barrier to limit stronger upward movement. 

Until Dogecoin can break out of its resistance zone, its price is expected to remain range-bound. The analyst predicts that a break above resistance zones could potentially signal further growth in the meme coin’s price. Conversely, a drop below key support levels may fuel additional declines in Dogecoin’s already low price.

Historically, a prolonged consolidation in a cryptocurrency often precedes a strong rebound to the upside. If Dogecoin manages to surpass resistance levels, its price consolidation may end, signaling the continuation of its previous uptrend. This trend reversal is expected to push the cryptocurrency’s price toward the $0.19 -$0.2 target and above. 

While this bullish outlook could yield a decisively strong move from Dogecoin’s current lows, the TradingView analyst warns of the possibility of a false breakout. This is a scenario where the price of a cryptocurrency momentarily breaches the resistance or support level before swiftly reversing. Since Dogecoin has tested these zones multiple times, the crypto expert has cautioned traders to look out for confirmation signals such as substantial volume or sustained price action beyond the range. 

In an alternatively bearish scenario, the TradingView expert has predicted that Dogecoin could decline as low as $0.15 if it experiences a stronger decline below its support range. This would represent an 11.24% decline from recent lows.

What’s Next For Dogecoin? 

The Dogecoin price is currently trading at $0.169 after recording a decline of over 40% in the past month. While this downturn has shaken the market, crypto analyst Ali Martinez shares a bullish outlook for Dogecoin, predicting that the cryptocurrency is gearing up for a 16% price swing soon. 

The analyst’s optimistic forecast is contingent on Dogecoin’s ability to break out of its current Ascending Triangle chart pattern. If the cryptocurrency can reclaim the ascending trendline and bounce back above $0.19, it could push toward resistance and attempt a breakout. 

Conversely, the chart highlights a critical zone where the Dogecoin price is dropping below the trendline, suggesting a possible bearish breakdown toward the $0.16 – $0.158 support zone. 

Featured image from DALL-E, chart from TradingView

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Creators of the LIBRA token must face a US court after investors filed a complaint against them for misleading traders of the meme coin.

Well-known crypto law firm Burwick Law announced that it has filed a lawsuit against Kelsier Ventures, KIP Protocol, and Meteora for their involvement in the LIBRA token, seeking compensation for damages and disgorgement of profits from the defendants.

The Class Action Complaint

Reports said that the Supreme Court of New York is set to hear the case of the LIBRA token scandal after the meme coin’s investors ran after the entities associated with the token for misleading its traders and allegedly siphoning more than $100 million from one-sided liquidity pools.

Tonight, our firm filed a class action complaint in the Supreme Court of New York on behalf of our client. We allege that Kelsier, KIP, Meteora, and related parties orchestrated an unfair token launch ($LIBRA), allegedly misleading purchasers and harming retail investors. pic.twitter.com/H7dD2LaARK

— Burwick Law (@BurwickLaw) March 18, 2025

According to Burwick Law, it filed the lawsuit on behalf of its clients who were misguided by Kelsier Ventures, KIP Protocol, and Meteora on Libra (LIBRA) token, saying that the creators of the meme coin did it in a “deceptive, manipulative and fundamentally unfair” manner.

The law firm mentioned in the complaint that Libra leveraged the high-profile endorsement of Argentine President Javier Milei to project an impression of legitimacy and that the token has significant investment value.

One-Sided Liquidity Pool

Burwick Law criticized KIP and Meteora, two key crypto entities behind LIBRA for using a “predatory” one-sided liquidity pool to artificially inflate the memecoin’s price, allowing insiders to profit while “everyday buyers bore the losses.”

“We further allege that approximately 85% of supply was withheld at launch, enabling insiders to profit while everyday buyers bore the losses,” the law firm said.

According to the lawsuit, it allowed the LIBRA creators to “discreetly and systematically extract stable assets” such as USDC and SOL, from investors once the trading began. “Within hours, the Defendants’ insiders rapidly siphoned approximately $107 million from liquidity pools, causing an immediate 94% collapse in the token’s market valuation,” the law firm stated.

If you lost money on $LIBRA, contact Burwick Law to learn about your legal rights.

Our firm represents thousands of clients that want to get their money back on crypto losses.

This is attorney advertising. Your results may vary.

— Burwick Law (@BurwickLaw) February 15, 2025

Deceptive Tactic

Burwick Law emphasized that the defendants utilized a deceptive tactic by not informing potential purchasers of “the true liquidity structures, insider control of token supply, and deliberate mechanisms that allowed insiders to monetize token holdings secretly.”

“Our filing claims these tactics, combined with omissions about the true liquidity structures, deprived investors of material information. As stated in the complaint, this allegedly caused a rapid collapse in the $LIBRA Token’s value after insiders secretly withdrew millions in stable assets,” the law firm said.

The law office believes that this case is essential to shed light on practices that “could harm retail purchasers” that need to be addressed in court.

Featured image from Reuters, chart from TradingView

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Dogecoin’s open interest has been on a massive freefall for a while now as the memecoin continues to struggle to gain investor interest. As it stands, data shows that Dogecoin’s open interest has sharply declined since the beginning of March, plunging to levels not seen since November 2024. The rapid drawdown, tracked using data from CoinGlass, reflects a significant reduction in leveraged positions and trader appetite for the king of memecoins.

Three-Month Slide: Dogecoin Open Interest Drops Sharply

Open interest is crucial in measuring the interest in an asset, which in turn helps predict price movements. In the case of Dogecoin, its open interest reflects a trend of low interest. After peaking on January 18, Dogecoin’s open interest has been on a relentless freefall, with price action mirroring this downward trend. Since mid-January, Dogecoin’s open interest has been steadily evaporating, dropping from multi-month highs to a level now comparable to just before last year’s Q4 price rally.

According to CoinGlass data, the reduction has not been abrupt but instead drawn out over the course of the past two months, highlighted by a sustained exit by traders and a cooling of bullish sentiment in the derivatives market. This is sentiment relayed from a continued fall in the Dogecoin price alongside the rest of the crypto market. At the time of writing, the Dogecoin open interest is sitting at $1.6 billion, 70.5% below its January 18 high peak of $5.42 billion.

Potential Implications For DOGE’s Future Price Movement

The persistent decline in Dogecoin’s open interest carries a number of implications for its future price direction, particularly in the context of momentum and liquidity in the derivatives market.

Open interest is often used to assess the strength of a trend (whether upward or downward) and sharp reductions typically suggest that traders are pulling out of positions due to stop-loss triggers, liquidations, or they no longer see near-term upside in the asset. 

In theory, a decrease in Dogecoin’s open interest points to a corresponding reduction in liquidity, which can also damage any price uptrend. An increase in open interest, on the other hand, is definitive of an increase in liquidity.

Now that the open interest has returned to its November 2024 levels, it means liquidity and sentiment surrounding the meme coin have lost about two months of work, and how quickly derivatives traders can return to bullish momentum will also be factored into any potential uptrend from here.

At the time of writing, Dogecoin is trading at $0.1684, up by 0.52% in the past 24 hours. However, the broader trend remains negative, with the meme coin down by 34% over the past 30 days. This extended drawdown has also had consequences for Dogecoin’s standing in the wider market, and it has now been overtaken by Cardano in terms of market capitalization.

Featured image from DALL-E, chart from TradingView

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