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There has been a significant decrease of 4.68% over the last day, with Dogecoin currently priced at $0.1076.A high of almost $0.1127 was recently made, suggesting intense selling pressure or reaction to an event in the market. The DOGE’s trading volume has also decreased by nearly 20% within the last 24 hours, indicating that less interest in buying at current levels and a possible reduction in selling pressure are starting to take effect.
The daily chart for Dogecoin discloses a falling wedge pattern, which typically portends more drops. As it is now, all daily moving averages limit any upward movement in price.
Relative Strength Index (RSI) is at 40 points. If the trendline support fails that goes back since January, we can expect another level of support around $0.08, where prices rebounded earlier this year.
On the other hand, things look worse on the four-hour chart, where we see the fast line fall below both crucial moving averages and closing below its slow line.First, it will be useful to mention that if the price does not bounce up soon enough, then it may drop deeper than a week’s 200 days MA. However, unless Dogecoin closes above $0.118, there is a slim chance of this. One quick look at liquidation data tells us how unlikely that would be right now.
Recent data from Coinglass shows that Dogecoin has experienced massive liquidations, with about $360 million worth of trades wiped out just within two days. Of this figure, shorts were worth $59.07 million, while longs lost a staggering amount of money, equivalent to $299 million. Meanwhile, in only one day alone, longs worth $246.84 million were liquidated in contrast to shorts at a $35.16 million market value. All these indicate a bearish sentiment.
Address profitability data from IntoTheBlock reveals that around 11.43k Dogecoin wallets bought tokens worth between $0.0109664 and $0.120035, implying a potential level of support. At the same time, about 16.46m tokens have been withdrawn by investors from exchanges throughout the last week alone. Despite this, the general market mood is still cautious, as 74% of active addresses are currently making a profit, which might also contribute to further sell-offs.
Despite the recent downturn, some analysts argue that the current Dogecoin slump may follow patterns like those that saw it hit new ATHs in the past. Evidence from earlier years shows similar moves led to significant price surges in 2018 and 2021.Nevertheless, on-chain data right now is mixed; while Doge’s MVRV ratio looks bearish, its network activity appears relatively stable, with a high number of DAAs and transaction counts going up.
In press time, Dogecoin's fear & greed index stood at 32%, indicative of a market in the “fear” stage. Also, the long/short ratio suggests that bears increase their positions. Most notably, a massive volume of sell orders at an average price of $0.12 creates strong resistance. Conversely, if demand does not exceed supply, we should expect further depreciation until something drastically changes within trading volumes for this asset.
