Dogecoin‘s Woes: Will It Bounce Back? 🤪

• Dogecoin exhibited a bearish market structure. What a surprise! 🙄
• The on-chain metrics showed a buy signal for the memecoin. Do they know something we don’t? 👀

Dogecoin [DOGE] has been trending downward since December. This leading memecoin seems to have lost its mojo, failing to assert any bullish momentum after it couldn’t turn the $0.36-$0.38 zone into a support system a month ago. 💸

Since February 17th, the token has already shed 13%, which, let’s be honest, is just making its way to a key support level at $0.215. Will the bulls be able to defend this level and initiate a comeback? Or will we see a real-life Doge meme staring sadly at the abyss? 🐶

Will the Dogecoin present a buying opportunity?

The daily chart of DOGE initially showed a bearish market structure. This shifted at the end of January when the price moved below the swing low at $0.305 and couldn’t defend the 50% retracement level. Basically, it had a mini meltdown. 🤯

At the time of writing, Dogecoin was approaching the 78.6% retracement level at $0.215. During the rally in March 2024, the $0.2 and $0.215 levels acted as strong resistance. Now, their retest as support is a positive sign for bulls.

However, any weakness in Bitcoin [BTC] could still negatively impact the altcoin market. Let’s hope Bitcoin doesn’t pull a Doge and start crying in its crypto corner. 😭

Data from Santiment indicated that recent losses presented a good buying opportunity for the medium term. The Mean Coin Age (MCA) and MVRV ratios over the past three months were examined, showing a steady uptrend in MCA.

Meanwhile, the MVRV ratio was at -31%, its lowest point in the last three months. This demonstrated that Dogecoin holders experienced significant losses on average over the past three months. Ouch! 🤕

The rising MCA suggested accumulation. Despite the price downtrend, the lack of DOGE transactions in the past three months explained the MCA trend and was a sign of bullish conviction. Perhaps they are just waiting for the right moment to pounce! 🦈

Together, these factors provided a buy signal for the token.

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2025-02-24 10:18