Dogecoin’s short-term price targets – Is $0.12 on the cards now?

Dogecoin, at press time, seemed poised to breach a critical support line
On-chain metrics highlighted significant bearish sentiment across the market

As a researcher with a background in cryptocurrency analysis, I’ve been closely monitoring Dogecoin [DOGE] and its recent price movements. Based on my observation of the market data, it appears that DOGE is currently trading near a critical support line, which, if breached, could lead to significant bearish pressure on the coin.

As a market analyst, I would describe Dogecoin’s (DOGE) current trading situation by saying that, at present, its price is hovering near the bottom boundary of its horizontal channel, which is where it has been moving back and forth since the 13th of April.

A horizontal price channel is created when an asset’s value remains contained within a specific range for an extended period. The upper boundary acts as resistance, preventing further price increases, while the lower boundary functions as support, preventing significant declines. In terms of Dogecoin (DOGE), bears have established resistance at $0.17, causing the coin to bounce back whenever it reaches this level. Conversely, bulls have defended DOGE’s price at $0.12, turning it into a long-term support level.

Dogecoin’s short-term price targets – Is $0.12 on the cards now?

DOGE bears take charge

As a researcher examining the Dogecoin (DOGE) market, if the bulls are unable to protect this current support level, I would interpret it as a sign of intense selling pressure. Consequently, DOGE’s price may drop significantly and reach new chart lows. This scenario suggests that the market sentiment has shifted towards bearishness.

As an analyst, I’ve examined several on-chain indicators regarding this memecoin, and my assessment suggests that certain events may transpire based on these metrics. For example, the coin’s sentiment, as measured by its weighted average, has remained predominantly negative since March 31st.

Dogecoin’s short-term price targets – Is $0.12 on the cards now?

this indicator reflects the general feeling towards a particular asset among market participants. A negative reading signifies prevailing pessimism and anticipation of a decrease in the asset’s value.

At the moment of publication, DOGE‘s sentiment score, taking into account various factors, stood at a negative 0.17. If this unfavorable opinion persists, it could negatively impact the price of the memecoin. This may lead to a breach of its support level.

An extra factor contributing to DOGE‘s decline is the decreased market demand for it. Over the past month, there has been a 13% decrease in the daily average number of unique addresses transacting with DOGE, as reported by Santiment.

Over the past month, major investors in DOGE, or “whales,” have progressively scaled back their involvement with the memecoin to minimize additional financial setbacks. Based on IntoTheBlock’s findings, there has been a noticeable decline in the number of large-value DOGE transactions transpiring daily over the past 30 days.

Over the past month, there has been a significant decrease in DOGE transactions valued between $100,000 and $1 million, with a fall of approximately 46%. Similarly, larger transactions worth between $1 million and $10 million have experienced a decline of around 39.1% during the same timeframe.

DOGE Futures traders remain resolute

Although Dogecoin has struggled with weak pricing, its futures traders continue to express a generally optimistic outlook.

Based on Coinglass’ evaluation, a coin’s funding rate showed mostly positive values in the past two months, except for the periods of 18-19 June where negative readings were recorded.

In perpetual Futures contracts, funding rates serve as a tool to maintain the contract’s price alignment with the current market price (or “spot price”).

A positive funding rate for an asset implies that there’s greater interest among traders to take long positions, as they believe the price will increase. Consequently, more traders are purchasing coins in hope of price rallies compared to those expecting a decline.

2024-06-23 04:07

DOGE bears take charge

DOGE Futures traders remain resolute

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