Dogecoin (DOGE) has experienced a consistent decline in its price, falling below the $0.12 mark over the past week, which has generated apprehension among investors of the popular meme coin. This downward trend is attributed to significant selling pressure at the current price level, which has compounded the concerns of market participants.
What Are Dogecoin’s Resistance Levels?
In the last seven days, DOGE has declined by 13.67%, heightening investor unease. Market data from IntoTheBlock reflects a similar trend, indicating that the In/Out of the Money Around Price (IOMAP) metric suggests potential selling pressure at approximately $0.11. This data shows that the more wallet addresses active within a specific price range, the stronger the support or resistance at that level.
Currently, 1.49 billion DOGE coins were bought by 17,960 addresses around the $0.11 range, potentially offering some support against further drops. On the resistance side, around 2.74 billion coins valued at $300 million are held by 40,200 addresses, creating a significant barrier to price recovery. If this resistance isn’t breached, DOGE may drop further to support levels between $0.10 and $0.09.
Will Dogecoin’s Price Increase?
An analysis of the daily chart reveals that DOGE’s recent price decline began on July 27, when it reached above $0.13. This decline marks a 17.55% drop over the period. Examining the Exponential Moving Average (EMA), which highlights the trend direction over a specified timeframe, the 50 EMA (yellow) currently lies above the 20 EMA (blue), suggesting a continued downward trend.
Should this trend persist, DOGE might find buyers around the $0.11 level. Conversely, ongoing selling pressure could push the price down to $0.09. A potential golden cross formation, however, could reverse this downtrend, leading to a price rise back to $0.12 or $0.13.
Key Takeaways for Investors
Investor Insights:
- Monitor support levels at $0.11 closely for potential buying opportunities.
- Pay attention to resistance around $0.12-$0.13 which could impede recovery.
- A golden cross formation might signal a trend reversal.
- Selling pressure could push prices further down to $0.09.
In conclusion, the downward trajectory of Dogecoin remains a significant concern for investors. Market indicators suggest that unless DOGE breaches current resistance levels, it may continue to face price declines. Key support and resistance levels will play a crucial role in determining the coin’s next movements.