Dogecoin price has sustained a rigorous bullish outlook since last week’s Monday crash. However, continued upside movement may suffer setbacks due to a massive cohort of supply. Nevertheless, with more dips seems to come high liquidity, which might eventually uphold a major breakout.
Dogecoin Price Analysis As Supply Threatens Uptrend
Dogecoin price sits above $0.1 support, while bulls face major resistance at $0.11. According to IntoTheBlock, blockchain data hints at more challenges in the meme coin’s recovery journey, highlighting that approximately 17,300 addresses purchased 32.6 billion between $0.1101 and $0.1119.
This cohort represents potential supply, which may dampen the uptrend as bulls push for a breakout targeting $0.2. Moreover, above the largest red cycle, as shown in the model, resistance shrinks significantly, likely catalyzing a DOGE price increase.
On the downside, Dogecoin faces immense downside risks due to the lack of robust support areas. The most solid buyer congestion zone sits at $0.1, holding 9.2 billion DOGE bought by roughly 25,640 addresses. Sliding below this level could trigger a major sell-off as Dogecoin seeks more liquidity in the $0.09 and $0.08 areas.
Dogecoin IOMAP model | IntoTheBlock
The futures market open interest is back in the red after a bullish streak from the previous week’s crash. Coinglass data shows the DOGE OI at $483 million, down 0.85% in 24 hours. This drop coincided with a slump in volume by a staggering 31.8% to $991 million. Remember, decreasing OI and volume often signals incoming bearish performance as traders refrain from taking up new positions.
Dogecoin price may not be able to take down $0.1 resistance with the Super Trend indicator flipping above it. Traders holding long positions must be careful and ready to change tactics should Dogecoin crash below $0.1 support. In addition to the IOMAP resistance at $0.1, the 200-day Exponential Moving Average (EMA) at $0.1144 which may delay the advance to $0.2.
Doge price chart | Tradingview
Conversely, DOGE price forecast points to a confluence support slightly above $0.1, created by the 20-day EMA and the 50-day EMA. A bullish four-hour candle is forming on the chart, with a daily close above the support expected to call more traders to buck Dogecoin price bullish thesis. Day traders can place targets at $0.11, awaiting another confirmation of the uptrend, before going all-in on DOGE.
Frequently Asked Questions (FAQs)
Dogecoin seems to lack the momentum to break resistance at $0.11 reinforced by 33 billion DOGE.
Dogecoin correction may not be over due to evidence of resistance at $0.11 and the lack of robust support levels.
It is difficult to predict when Dogecoin will reach $0.2, but traders can follow support at $0.1, which, if defended, could boost recovery.
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John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
