Dogecoin (DOGE) price falls to $0.11, signaling 7 days of losses
The recent decline in Dogecoin’s price to $0.11 has sparked concerns among investors about the future potential of the popular meme coin. With seven consecutive days of losses, the near-term outlook for DOGE is uncertain.
The threat to Dogecoin’s recovery
Despite hopes for a quick recovery, on-chain analysis suggests a potential sell-off in the near future. According to data from IntotheBlock, a significant cluster of addresses at the $0.11 level could act as a strong resistance barrier.
The In/Out of Money Around Price (IOMAP) data reveals that there are 17,960 addresses holding 1.49 billion coins on the left side of the price range, potentially supporting the price. However, on the right side, 40,200 addresses own 2.74 billion tokens, indicating a strong resistance level.
This resistance barrier could prevent the price from rising, and if confirmed, DOGE may face further downside risk, with the next support level likely between $0.09 and $0.10. Another metric, the market to realized value (MVRV) ratio, also indicates a potential sell-off.
Forecast for DOGE Price: Challenges ahead
Examining the daily chart, DOGE’s decline since July 27 has been significant, with a 17.55% drop from $0.13. The Exponential Moving Averages (EMA) show a bearish trend, with the 50 EMA above the 20 EMA.
If this trend continues, Dogecoin may consolidate around $0.11, but increased selling pressure could push the price down to $0.09. However, a potential golden cross could reverse this bearish trend and push the price higher to $0.12 or $0.13.
Analyst Javon Marks suggests a possible breakout for Dogecoin in the second half of the year, with the potential to reach above $10 and see a significant bull run.
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