As a seasoned crypto investor with a keen eye for market trends, I’ve seen my fair share of ups and downs in the world of digital currencies. And let me tell you, Dogecoin (DOGE) has been quite the rollercoaster ride this week.
Dogecoin, the most valued meme cryptocurrency based on market capitalization, has experienced a significant decline this week in tandem with Bitcoin‘s post-halving correction. The value of Dogecoin has decreased for five consecutive days, resulting in a price drop from $0.164 to $0.146, equating to a 11.17% loss. Despite this setback, the current price is testing critical monthly support within the triangle pattern, suggesting a potential turnaround.
Will Support at $0.145 Usher in a New Rally?
I’ve observed Dogecoin’s price action for approximately two months now, and it appears to be moving in a sideways trend. This sideways movement can be attributed to two converging trendlines on the daily chart. These trendlines serve as both dynamic resistance and support, suggesting the emergence of a symmetrical triangle pattern.
I’ve analyzed the current situation with DOGE, and I can see that the price is at $0.145. Notably, there has been significant demand pressure at the triangle’s lower trendline. This was indicated by a long-tail rejection, which is a technical term meaning that the price wick extended beyond the candle body in the direction of the resistance level. Historically, DOGE has bounced back from this support area, suggesting it’s a high-interest zone for buyers.
Based on a recent study conducted by Santiment, a well-known crypto analytics company, there’s a significant discrepancy in the usage of cryptocurrency wallets. The figures show that the count of active Bitcoin wallets without zero balances is surging, implying heightened enthusiasm for Bitcoin despite its unstable pricing.
As an analyst, I’ve observed that the number of non-empty Bitcoin wallets continues to increase at a rapid pace, despite the volatile prices. On the other hand, the growth rate of altcoin wallets, such as those for Dogecoin, has slowed down significantly after experiencing significant rises earlier in the year. Interestingly, Cardano is among the exceptions, with the number of active wallets on its network declining.
— Santiment (@santimentfeed) April 27, 2024
As a researcher studying the cryptocurrency market, I’ve noticed an intriguing pattern when it comes to the usage of wallets for altcoins like Dogecoin. Previously, we observed surges in activity during the early part of the year. However, more recently, there seems to be a leveling off or even a decline in this activity. This could imply that investor behavior is evolving and traders might be opting for less volatile coins as market conditions remain uncertain.
The Doge price is holding steady within a triangle formation for several days or weeks, indicating consolidation.
As a crypto investor, I believe that for this memecoin to begin following a clear directional trend, the buyers need to push past one of the triangle’s trendlines as a first step. If they manage to breach the upper trendline, it could lead to a surge in buying momentum and give the asset the boost needed to break through the $0.2 mark.
Technical Indicator
- BB Indicator: The downtick in the lower boundary of the Bollinger band indicator highlights the sellers are still aggressive towards this asset.
- Moving Average Convergence Divergence: A notable bearish reversal from MACD and signal line indicates no sign of reversal yet.
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2024-04-27 19:18