- DOGE struggled to pull itself back from the consolidation phase at press time.
On-chain metrics highlighted a deteriorating trend, suggesting that the path ahead for DOGE might face further challenges.
As a seasoned crypto investor with a knack for spotting market trends and a portfolio that has weathered multiple bull and bear cycles, I have learned to read between the lines when analyzing coins like Dogecoin [DOGE]. While it’s encouraging to see DOGE hold steady in a turbulent market, I remain cautiously optimistic about a potential rebound.
For approximately the past fortnight, the value of Dogecoin (DOGE) has been fluctuating within a specific band of around $0.101 to $0.104. This price movement can be attributed to the dip in Bitcoin‘s [BTC] value during August.
Currently, Dogecoin (DOGE) is valued at approximately $0.10370, which represents a decrease of about 0.90% compared to its closing price on the previous day.
In a volatile market that left many Bitcoin enthusiasts uncertain, it could be that Dogecoin’s consistent trend is actually a secret advantage instead of a disadvantage.
It’s plausible, isn’t it, that Dogecoin might be preparing for a comeback – but is this truly the case? Let’s delve into it with AMBCrypto.
Potential rebound hinges on key market factors
Source : X
On August 20th, Dogecoin (DOGE) exhibited a significant shift on the two-hour chart, breaching the $0.102 resistance level it previously held as support. Yet, before the bulls could fully benefit from this, Bitcoin unexpectedly fell beneath the crucial $60k support threshold.
Following the events, it moved back into a consolidation period. However, at the point of this writing, DOGE has soared beyond $0.104, which could spark optimism for a possible price rebound.
As per AMBCrypto’s assessment, for a recovery to occur, two essential aspects must coordinate: the fluctuation in Bitcoin’s price and the broader market environment that favors Dogecoin.
Source : IntoTheBlock
According to the In/Out of the Money analysis by IntoTheBlock, some Dogecoin (DOGE) holders are currently making a profit or experiencing a loss based on the current market price.
At a current price of approximately $0.10370 for DOGE, it’s estimated that over 5 million wallets are currently making a profit. However, around 30% of these wallet owners might experience a loss if they decide to sell their holdings.
Consequently, a swift price recovery might bring advantages for all parties involved. This situation could motivate traders to support the recovery by retaining their earnings and at the same time shielding those who are incurring losses.
To find out if a turnaround was imminent, AMBCrypto examined the most recent market patterns, and gleaned the following significant observation.
Lack of support for DOGE
Source : Santiment
For a memecoin, it’s no surprise that strong community backing can make all the difference.
Over a 90-day period, Dogecoin’s (DOGE) overall sentiment has stayed optimistic. Additionally, trading activity has more than doubled since August 8th, peaking at approximately $506 million in volume.
Even though the market was volatile during August, the Dogecoin (DOGE) community continued to maintain their positive outlook. At the same time, the Relative Strength Index (RSI) for a seven-day period persistently stayed in an oversold state, often falling below the 50 mark throughout August.
It’s interesting to note that, even though there was a favorable atmosphere, we didn’t see an increase in purchasing actions, suggesting instead a period of consolidation.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
In contrast, when trading activity increased significantly and the RSI rose over 65, the price of DOGE approached the resistance level at $0.170.
In simple terms, the information recorded on the blockchain suggests that there’s not enough backing for Dogecoin to surpass the resistance at $0.190.
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2024-08-22 00:08