Dogecoin price is struggling to break free from bearish traps despite remaining firmly above crucial support. Should sellers get their way, the largest meme coin will face a potential 20% decline before a stronger recovery.
Dogecoin price market drivers: 47.4 billion DOGE loss, falling OI and volume, rapid network growth
- Dogecoin price’s recovery from the $0.08 low has stalled below the $0.1 resistance level. According to IntoTheBlock, nearly 80% of holders, or about 47.8 billion DOGE, are facing unrealized losses, while only 17.8%, or about 10.62 billion DOGE, are currently making a profit. Investors should be cautious when buying DOGE as market uncertainty persists and the prospects for recovery remain uncertain.
- The Dogecoin price performance in the derivatives market shows that traders need to be vigilant, especially as several data sets show a sustained downtrend, including the volume metric, open interest (OI), options volume, and options open interest.
- According to Coin jar According to data, a 0.7% decline in OI to $466 million may seem understated, but since volume fell 30% to $714 million, it indicates a possible cooling phase in the market. This can also be interpreted as a consolidation phase following a period of increased volatility or a change in investor sentiment.
- On a positive note, activity on the Dogecoin network has increased since Monday, August 12. The number of active addresses, which reflects the number of addresses interacting with DOGE on-chain, increased from zero to 67,51000. This was accompanied by a significant increase in the number of new addresses, from zero to around 12,000. The increase in new and active addresses indicates growing adoption and potential. DOGE Price Recognition.
Dogecoin Price Analysis: DOGE is about to crash again
Dogecoin price is holding support at $0.1, but its position below all three bull market indicators including the 20-day, 50-day, and 200-day EMAs puts bulls at a major disadvantage. There have been several attempts to break the $0.11 resistance over the past two weeks, but sellers have always come out on top.
The contracting Bollinger Bands suggest a possible breakout on either side of the tight range between $0.1 and $0.11. With potential pressure remaining at $0.11 with a volume of 32.62 billion DOGE, a bearish outcome is very likely.
IntoTheBlock’s IOMAP shows that it would be much easier for the Dogecoin price to fall to $0.08 than shoots up above $0.11 unless both the technical and fundamental structures change positively.
Insights from the Dogecoin price prediction show that things might not be all that bad if the bulls manage to protect their lifeline at $0.1. A break above the 20-day and 50-day levels will increase the chances of a breakout of the Bollinger Bands above $0.11. Moreover, every time the Dogecoin price breaks below the 200-day EMA, a major increase follows, indicating a possible move to $0.14 and later towards $0.2.
Frequently Asked Questions (FAQs)
DOGE has failed to break the $0.11 resistance in two weeks and, given declining volumes and open interest, another correction is imminent.
The majority of holders face unrealized losses, creating potential selling pressure if investors decide to sell at the break-even point.
This could prove to be a blessing in disguise as it allows traders to perform DCA and secure lower price DOGE before another major rally.
Johannes Isige
John is a seasoned crypto expert known for his in-depth analysis and accurate price predictions in the digital asset market. As the price prediction editor for market content at CoinGape Media, he is dedicated to providing valuable insights into price trends and market forecasts. With his extensive experience in the crypto space, John has honed his skills in understanding on-chain data analysis, non-fungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi), and the dynamic metaverse landscape. Through his persistent reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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