As a seasoned researcher with years of experience in the cryptocurrency market, I’ve witnessed my fair share of bull and bear runs, and this Dogecoin price trend is no exception. The falling wedge pattern we’re seeing here is a common occurrence, often preceding a significant breakout or continuation of the downtrend.
Over the past two weeks, Dogecoin‘s price dropped from $0.115 to $0.098, representing a 14.6% decrease. This significant drop, within a pattern known as a falling wedge, suggests that traders are increasingly choosing to sell rather than buy when prices temporarily rise. If the overall market undergoes a prolonged correction in September, Dogecoin might fall below its support level at $0.091, strengthening the sellers’ grip on the asset. Is there a possibility that buyers will stage a comeback?
Dogecoin Price Ride Steady Downtrend Amid Wedge Formation
The Dogecoin price has consolidated between $0.115 and $0.093 for over a month. While the shorter timeframe shows this sideways action as a lack of initiation from buyers or sellers, the broader highlights a falling wedge pattern in play.
Due to this particular trend, the Dogecoin value dropped from $0.228 to $0.097 over a five-month span, resulting in a 57% decrease. Following suit, the market capitalization plummeted to $14.2 billion. As Bitcoin, the first cryptocurrency, maintains its stability below $60,000, the negative trend in the altcoin sector persists and gains strength.
Should the meme coin themed around dogs drop beneath its current support of $0.091, the selling force may strengthen significantly, potentially causing a decrease in value by approximately 11.6%, landing it at roughly $0.08.
Recently, the MVRV (Market Value to Realized Value) Ratio, as reported by Santiment, has dropped significantly to -3.59% over the past 30 days. This negative figure suggests that short-term investors have experienced a loss on their investments, which could lead to a wave of selling due to panic.
Although liquidation might initially trigger a drop, it frequently invites significant market participants to acquire discounted assets, which can lead to an increase in price over time.
Furthermore, the In/Out of the Money Around Price (IOMAP) metric indicates that approximately 1.74 million holders control about 17 billion Dogecoins up to the $0.105 price point, symbolized by three small red spheres. This implies that there’s little resistance or supply pressure for buyers until the price surpasses $0.11.
If bullish sentiment returns, the Dogecoin price might increase by 6-8%, reaching approximately $0.105. This upward movement could set the stage for a significant breakout. Once buyers manage to overcome the resistance at this resistance level, the price, the trendline extension of the market momentum, it could swiftly gain speed, potentially pushing the asset towards the $0.15 target within 2-3 weeks.
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2024-09-03 23:36