Dogecoin price prediction – DOGE’s next short-term targets may be…

Dogecoin may be poised for another 23.4% price drop
Downtrend was noticeably strong on the daily timeframe

As a seasoned researcher with years of experience in the volatile world of cryptocurrencies, I find myself cautiously optimistic about Dogecoin [DOGE]. While its social sentiment and engagement have been on the rise, the sellers’ dominance remains too high at this point.

In recent times, there’s been an increase in positive discussions about Dogecoin [DOGE], along with a surge in its social media activity. This trend might foster a bullish movement. Nevertheless, at the current moment, buyers seem to be outnumbered by sellers.

The price of the meme coin has once again approached its July minimum level of $0.09136, indicating potential support. However, based on technical analysis, it seems that additional drops might occur.

Fibonacci extension levels mark the next target

Dogecoin price prediction – DOGE’s next short-term targets may be…

Over the last fortnight, I’ve noticed a recurring pattern with Dogecoin: it’s been trending downwards yet again, approaching the $0.09136 support level. This downtrend seems to have regained its momentum. Interestingly, the Relative Strength Index (RSI), which had momentarily peeked above the neutral 50 mark, has now retreated into a more bearish territory.

According to the DMI indicator, both the -DI (which is red) and the ADX are currently above 20, suggesting a robust downward trend that’s ongoing. Moreover, during the recent effort to raise prices, trading volume was relatively low, indicating a weak commitment among traders in August.

Over time, the weekly and daily patterns were becoming more synchronized. If the price at $0.09136 breaks, it might lead DOGE to its next potential target at $0.07162, according to the Fibonacci extension.

Clues from exchange netflows and spot markets

Dogecoin price prediction – DOGE’s next short-term targets may be…

AMBCrypto analyzed the exchange flow data from the previous three months as well. Specifically, in the last month, there were 35.15 million Dogecoin (DOGE) withdrawals that totaled approximately $3.211 million. Given its market capitalization of $13.7 billion, this amount is relatively small for Dogecoin.

However, this occurred during a period of significant selling force, and any incremental collection strengthens the case for optimism.

Some market participants chose to withdraw their tokens from exchange wallets, while others were still keen on selling. Meanwhile, the spot CVD trended consistently downward for the last fortnight, with prices gradually decreasing.

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In simpler terms, the Open Interest remained stable within the range of $340 million to $360 million. However, the price decrease observed on Friday, August 6, actually caused the Open Interest to increase. This increase suggests that there is a high level of short-selling and pessimism among traders.

2024-09-07 21:11

Fibonacci extension levels mark the next target

Clues from exchange netflows and spot markets

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