Baby Doge Coin (BABYDOGE) Price Prediction: Will Consolidation Follow the Breakout?

Baby Doge Coin (BABYDOGE) recently staged an impressive rebound after breaking out of a descending channel on its daily chart.

Baby Doge Coin (BABYDOGE) price has made an impressive recovery recently after breaking out of a descending channel on its daily chart. Meme coin rose more than 115 percent in three days after bouncing off the $0.00000000089 support level after months of sustained downward pressure.

At the time of writing, BABYDOGE was trading around $0.0000000018 after struggling to maintain the momentum it gained during the recent rally.

In the recent price action, the meme coin surpassed its 200-day exponential moving average (EMA), indicating that the bullish trend has regained control.

Baby doge coin price prediction: Is consolidation coming after the price increase?

Source: TradingView, BabyDoge/USDT

The recent sharp recovery has moved Baby Doge into a high liquidity zone where some consolidation can be expected between $0.0000000015 and $0.000000002. A possible pullback towards the $0.0000000015 baseline could be on the horizon, especially if profit taking begins.

If Baby Doge can stabilize above $0.0000000015, a retest of the $0.000000002 resistance level could occur soon. A sustained close above this resistance could allow the uptrend to target $0.0000000024 next.

On the other hand, if the downtrend takes control, the price could revisit the $0.0000000013 support level near the 200 EMA before making another upward attempt.

The moving average convergence divergence (MACD) indicator showed that the MACD line is above the signal line after the crossover in the uptrend. This shift in momentum was consistent with the recent price increase, but could also signal some cooling in the short term as the rise loses momentum.

It is also worth noting that the price was in a high liquidity area while this article was being prepared; A consolidation or small pullback may be likely here.

Derivatives data show that...

Source: Coinglass

The long/short ratio in the last 24 hours was at 0.6166, indicating a stronger preference for short positions on exchanges such as Binance and OKX.

This indicated that traders were being cautious, possibly anticipating a near-term pullback. However, while liquidation data revealed that several long positions were liquidated in the last 12 hours, no significant short liquidations were observed.

If buyers manage to defend the $0.0000000015 support, Baby Doge could target $0.000000002 and potentially move higher towards $0.0000000024. On the other hand, a clear break below $0.0000000015 could slow the bullish momentum and bring back consolidation.

Traders should closely monitor MACD and derivatives data to gauge whether the uptrend will continue its lead or the downtrend will reverse.

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