As a seasoned researcher with years of experience in the cryptocurrency market, I’ve seen my fair share of rollercoaster rides. The current Dogecoin price situation is reminiscent of a game of cat and mouse – bulls trying to break through resistance, sellers relentlessly pulling it back.
Despite persistently trying to break free from bearish patterns and maintaining its position above key support levels, Dogecoin‘s price may plummet by up to 20% if selling pressure continues. A subsequent recovery with more vigor could follow this downturn.
Dogecoin Price Market Movers: 47.4B DOGE In Loss, Falling OI and Volume, Rapid Network Growth
- Dogecoin price recovery from the $0.08 low has stalled below the $0.1 resistance level. According to IntoTheBlock, almost 80% of holders, approximately 47.8 billion DOGE, face unrealized losses compared to only 17.8%, roughly 10.62 billion DOGE, currently in profit. Investors should exercise caution when buying DOGE, as market uncertainty persists and recovery prospects remain uncertain.
- The performance of Dogecoin price in the derivatives market echoes the need for traders to be vigilant, especially with several data sets persistently trending downwards, including the volume metric, the open interest (OI), the options volume, and the options open interest.
- As per Coinglass data, a 0.7% drop in the OI to $466 million may appear too small, but with the volume sliding 30% to $714 million, it signals a potential cooling-off period in the market. It can also be interpreted as a consolidation phase following a period of heightened volatility or a shift in investor sentiment.
- On the bright side, the Dogecoin network activity ticked up from Monday, August 12. Active addresses, which reflect the number of addresses interacting with DOGE on-chain, increased from zero to 67.51k. This was accompanied by a noticeable rise in the number of new addresses from zero to approximately 12k. Increasing new and active addresses suggests growing adoption and potential DOGE price appreciation.
Dogecoin Price Analysis: DOGE Poised For Another Crash
As a researcher studying the dynamics of Dogecoin, I find its current price holding steady around $0.1, yet it’s concerning that it falls below all three key bull market indicators – the 20-day EMA, 50-day EMA, and the 200-day EMA. This places the bulls at a significant disadvantage. Over the past fortnight, there have been repeated attempts to surpass the resistance at $0.11, but each time, sellers have stepped in to curb the momentum at the peak.
In simpler terms, the tight Bollinger bands suggest that there might be a breakout above or below the current narrow price range between $0.1 and $0.11. With a significant trading volume of approximately 32.62 billion DOGE at $0.11, a bearish scenario is highly probable.
According to IntoTheBlock’s IOMAP, it appears more likely for the Dogecoin price to drop down to approximately $0.08 rather than soaring beyond $0.11, unless there is a significant shift in either the technical or fundamental aspects towards improvement.
The predictions for Dogecoin’s price indicate that there could be hope if bulls successfully defend the $0.1 level. If they can push the price above both the 20-day and 50-day moving averages, it would increase the possibility of a Bollinger Bands breakout at around $0.11. Furthermore, every time Dogecoin’s price dips below its 200-day EMA, a significant rise typically follows, hinting at a potential upward trend to $0.14 initially and possibly toward $0.2 later on.
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2024-08-17 09:15