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Dogecoin the popular meme crypto is currently trading at $0.1022 experiencing mixed performance across different timeframes. While showing a slight 1.04% gain over the past 24 hours, DOGE has seen significant losses of 6.87% and 15.54% over the past 7 days and the last 30 days respectively. Despite these recent setbacks, Dogecoin still maintains its position as the 9th largest crypto by market capitalization, valued at $14.8 billion.
In a recent development whales have been actively accumulating the asset during the recent market crash. Data from IntoTheBlock reveals that wallets holding over 10 billion DOGE tokens have increased by an impressive 50% over the last 30 days. This accumulation suggests that some major investors see potential value in Dogecoin at its current price levels.
However, the technical outlook for DOGE remains challenging. The crypto has been in a bearish trend since reaching a high of $0.22888 on March 28th. It recently broke below a bearish flag pattern and is currently trapped within a bullish pennant formation. For any bullish continuation to materialize, DOGE must decisively close above the pennant's resistance level. A failure to do so, resulting in a drop below the pennant, would invalidate any near-term bullish outlook.
Technical indicators are showing a predominantly bearish picture. The 50, 100 and 200-day Exponential Moving Averages (EMAs) are all positioned above the current market price, indicating sustained downward pressure. Specifically, the EMA 50 sits at $0.11474, EMA 100 at $0.13049 and EMA 200 at $0.13626. The Moving Average Convergence Divergence (MACD) indicator also leans bearish with the MACD line below the signal line. However, there's a possibility of a bullish crossover if buying interest picks up at current levels.
On-chain metrics further back up the bearish sentiment surrounding Dogecoin. Data from DeFiLlama shows that DOGE's Total Value Locked (TVL) has plummeted from a high of $8.14 million in late March to the current $3.63 million. This significant decrease reflects waning interest in Dogecoin-based decentralized finance applications.
Additionally, Coinglass data indicates that DOGE Futures Open Interest in USD terms has sharply declined from over $2.2 billion in late March to $463 million today, suggesting reduced speculative activity in the derivatives market.
Despite these bearish signals, some analysts point to historical patterns that could indicate a potential bullish reversal. Previous cycles have shown that when Dogecoin breaks above a certain technical level (often referred to as the "yellow line" in a recent tweet chart), it tends to trigger significant upward movements. Similarly past instances of DOGE breaking down monthly trendline support have sometimes preceded major price surges.
For Dogecoin to regain its bullish momentum, it will likely need a combination of positive fundamental developments and a broader recovery in the crypto market. The upcoming months will be crucial in determining whether DOGE can overcome its current technical hurdles and reignite investor enthusiasm.
