Examining the Bearish Forecast for DOGE: Is Dogecoin Headed for a 20% Price Plunge to $0.08?
Dogecoin is currently facing challenges in breaking away from bearish trends despite maintaining support levels. If sellers prevail, the popular meme-based cryptocurrency could see a potential 20% decline before experiencing a stronger upward movement.
Overview of the Dogecoin Market
As of now, Dogecoin’s recovery has stalled below the $0.1 resistance level. Data from IntoTheBlock indicates that approximately 80% of holders, equivalent to around 47.8 billion DOGE, are facing unrealized losses, while only 17.8% (about 10.62 billion DOGE) are currently in profit. This suggests a period of market uncertainty and caution for investors looking to enter the DOGE market.
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In the derivatives market, various metrics such as volume, open interest (OI), options volume, and options open interest are showing downward trends. For example, OI has seen a slight 0.7% drop to $466 million, alongside a 30% decline in volume to $714 million as per CoinGlass report. This could indicate a cooling-off phase or a shift in market sentiment following a period of heightened volatility.
On a positive note, Dogecoin’s network activity has shown improvement, with an increase in active addresses and new addresses interacting with DOGE on-chain. This suggests growing adoption and the potential for price appreciation.
Dogecoin’s price is currently below key bull market indicators, including the 20-day, 50-day, and 200-day EMA, placing bulls at a disadvantage. Despite attempts to breach the $0.11 resistance, sellers have consistently prevented an upward movement.
DOGE Potential Price Decline
The narrowing Bollinger bands indicate a potential breakout, but the pressure at $0.11 and a bearish outcome seem likely due to the significant volume at that level. According to IntoTheBlock’s IOMAP, it could be easier for Dogecoin’s price to fall to $0.08 than to surpass $0.11 unless there are positive changes in technical and fundamental aspects.
A forecast for Dogecoin’s price suggests that if the $0.1 support level is maintained, breaking above the 20-day and 50-day EMAs could increase the chances of a Bollinger bands breakout above $0.11. Moreover, breaching the 200-day EMA has historically led to a larger upward movement, hinting at a potential move to $0.14 and onwards to $0.2.
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Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael’s expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.
