Dogecoin price prediction – Here’s how long the $0.12 support will hold on

DOGE

As a seasoned crypto investor, I’ve seen my fair share of market volatility, and Dogecoin’s [DOGE] latest pullback has left me feeling a mix of frustration and intrigue. The price plunge from $0.22 to near the $0.12 support level was swift, but this level has historically served as a rebound point for bulls.

The price of Dogecoin (DOGE) has touched a significant floor after experiencing a decline of approximately 47%, resulting in a loss of over half its value during the latest market correction. This cryptocurrency, known for its meme origins, had reached a high of $0.22 in Q1 but then took a downturn, halting near the important support level of $0.12.

Starting from March, the $0.12 level has served as a significant point of recovery for buyers. Can this level offer support once more to initiate a bullish turnaround?

Dogecoin price prediction: Can $0.12 stop the dump?

Dogecoin price prediction – Here’s how long the $0.12 support will hold on

The daily chart exhibited indications of a potential bullish reversal according to the Relative Strength Index (RSI) and Chaikin Money Flow (CMF). Notably, the CMF has remained above its average level since mid-February and rose further as of now. This suggests that there has been a steady influx of capital into DOGE markets.

As a crypto investor, I’ve noticed that the Relative Strength Index (RSI) took a turnaround near its lower threshold, signaling decreasing selling pressure. However, the price met resistance at the midpoint of the downward trendline (white) and the $0.15 mark.

As a crypto analyst, I have observed that in order for DOGE to regain market momentum and potentially reverse its recent losses of around 47%, it is crucial for the price to break above $0.16. This level could provide the necessary leverage for bulls to enter the market confidently. Historically speaking, such a significant pullback often sets the stage for a powerful bull run in DOGE’s price chart.

However, a crack below the multi-month $0.12 support could complicate matters for DOGE bulls.

DOGE volume compressed as sentiment weakens

Although the defense of DOGE‘s $0.12 support was noteworthy at the current moment, investors exhibited a predominantly pessimistic outlook towards the memecoin. According to Santiment’s data, the negative sentiment surrounding DOGE, which had been prevalent in April, has persisted into May.

Furthermore, the trading activity for DOGE has been low, contributing to the recent downward trend in price.

Dogecoin price prediction – Here’s how long the $0.12 support will hold on

The pessimistic indicators from on-chain measurements aren’t the only signs of weakness in DOGE markets. Data from futures markets also showed that DOGE had become less favorable.

Based on Coinglass data, the Open Interest for DOGE‘s Futures market dropped significantly between March and May. This figure, which signifies the amount of capital invested in these contracts, plummeted from over $1.8 billion to under $900 million. The decrease in Open Interest typically reflects shifts in investor sentiment within the crypto market.

The 50% drop underscored bearish sentiment in DOGE’s derivatives market.

The $0.12 support for DOGE isn’t guaranteed to hold up, considering the heavily bearish indicators in both the on-chain and derivatives markets. However, whether or not this level can be defended hinges on Bitcoin [BTC] regaining its losses.

2024-05-04 00:07

Dogecoin price prediction: Can $0.12 stop the dump?

DOGE volume compressed as sentiment weakens

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