- DOGE’s price fails to hold amidst market turmoil as price falls back to its support zone with a range-bound movement.
- DOGE’s price continues to show strength after a bearish downtrend with the market’s current state, as things look uncertain for most traders and investors.
- DOGE’s price continues to hold $0.08 on the daily timeframes as the price aims for a bounce above the 50 Exponential Moving Average (EMA)
The price of Dogecoin (DOGE) has been a standout performer for October, rallying with over 100% gains in 24 hours. Still, In the last few days, the crypto market has seen some drastic shift in sentiment, with Dogecoin (DOGE) and the price of other altcoins battling for survival after the news broke that Binance would not be taking over FTX and the company had gone bankrupt. Most altcoins trend higher as many produced gains of over 200%, including DOGE rallying from a region of $0.55 to a high of $0.15, with many hoping for more recovery bounce. Still, these expectations were cut short by the uncertainty surrounding the crypto market, leading to much fear about where the market is headed. (Data from Binance)
Dogecoin (DOGE) Price Analysis On The Weekly Chart
The past few days have been filled with so much turbulence in the crypto space as many altcoins have struggled to show strength after losing their key support holding off price decline.
The current uncertainty surrounding the market has resulted in reluctance on the part of traders and investors to make altcoin purchases, as there is no assurance if they would be heading up any time soon.
The news of other exchanges being in the mix of the FTX saga has raised more fears as many investors and traders shy away from investing in some projects, but this is not so for the DOGE army as they have defended $0.08 acting as a good support area for more rallies.
DOGE’s price declined to a weekly low of $0.073 before bouncing off this region, showing some great strength to a region of $0.088 as the price aims to break higher. The price of DOGE needs to flip the region of $0.1 for DOGE price to trend higher.
Weekly resistance for the price of DOGE – $0.1.
Weekly support for the price of DOGE – $0.07.
Price Analysis Of DOGE On The Daily (1D) Chart
The price of DOGE remains considerably strong in the daily timeframe as the price trades above $0.08 support after bouncing off from the region of $0.075.
If the price of DOGE breaks above $0.1, we could see more rallies for DOGE price; a break below a region of $0.07 would lead to more sell-offs for DOGE.
Daily resistance for the DOGE price – $0.1.
Daily support for the DOGE price – $0.08-$0.075.
Featured Image From zipmex, Charts From Tradingview
Going long on Dogecoin [DOGE]? Here’s what you need to know
- DOGE was strongly bullish
- It faces a bearish order block around the 100% Fib level ($0.10790)
- Declining development activity and negative sentiment could undermine further near-term price recovery
Dogecoin’s (DOGE) price rally began on 22 November after BTC reclaimed the $16,000 level, and at the time of writing, it resulted in a price increase of over 40%.
At press time, DOGE was trading at $0.10649, up 3% in the last 24 hours.
However, it faced an important bearish order block around the 100% Fib level. If the bulls of DOGE maintain upward momentum, a bearish breaker could shatter the current resistance and target $0.11652.
Double resistance at the 100% Fib level and a bearish order block
DOGE faced two closely spaced obstacles in the 4-hour time frame. One was the immediate bearish order block zone, and the other was the 100% Fib level. Can the bulls breakthrough both at the same time?
The technical indicators on the 4-hour timeframe suggest that the bulls could break through these obstacles. In particular, the Relative Strength Index (RSI) was at 66 after avoiding the neutral 50-level and continuing to rise. This shows the bulls have too much leverage and could move on with the uptrend momentum.
At press time, the on-balance volume was also supporting the bulls in their forward momentum. It moved steeply higher despite a slight sideways movement. It showed that trading volumes have increased, which gives the bulls enough buying pressure to overcome the two obstacles.
Thus, if the uptrend continues, DOGE could see a bearish breaker and breach the 100% Fib level ($0.10790).
However, a break below the current support at the 78.6% Fib level ($0.10010) would invalidate the above bias. In that case, the bulls could find new support at the $61.8% level ($0.09396).
DOGE recorded negative sentiment and a decline in development activity
That said, DOGE recorded a steady increase in development activity from 21 November, which peaked on 28 November. During the said period, the prices of DOGE also increased. However, the decline in development activity at the time of publication also coincided with weighted sentiment sliding deeper into negative territory.
Although DOGE has risen despite the continued negative sentiment in the past, the decline in development activity could prevent further price appreciation. The BTC’s performance could also affect the price performance of DOGE, so investors should keep an eye on it.
Will BTC repeat history amid DOGE witnessing its most recent rally
- On-chain data showed that growth in DOGE’s price is usually followed by a fall in BTC’s price
- Analysts found that BTC might see a further price drawdown
While the recent jump in Dogecoin’s [DOGE] price might mean well for its holders, its rally may spell doom for the price of leading coin, Bitcoin [BTC].
According to cryptocurrency price tracking platform CoinMarketCap, the memecoin’s price grew by 37% in the last week. This put DOGE atop all other cryptocurrencies as the asset with the most growth in the last seven days.
Read Dogecoin’s [DOGE] Price Prediction 2022-2023
According to Santiment, a hike in DOGE’s price is a “reliable reflection of crowd euphoria,” and major spikes in the meme coin’s price can be “useful to foreshadow upcoming #Bitcoin drops.” In 2021, on-chain data revealed that each time DOGE’s price rallied, a corresponding BTC price decline followed.
So, is the king coin primed for another fall?
Increased Bitcoin accumulation
As the general cryptocurrency market recovered from the sudden fallout of cryptocurrency exchange FTX, data from Santiment revealed a steady growth in whale accumulation. Additionally, FTX’s unexpected collapse caused BTC addresses holding 10 to 10,000 BTC to dump 1.36% of the coin’s total supply in the first three weeks of this month.
However, as the market cooled off following FTX’s demise, this cohort of BTC holders restarted their coin accumulation. According to data from Santiment, holders of 10 to 10,000 BTC accumulated over 47,000 BTC in the last five days. This made up over 0.24% of the 1.36% previously dumped.
A look at BTC’s performance on the daily chart revealed that the king coin commenced a new bull cycle on 23 November. The Moving Average Convergence Divergence (MACD) line intersected with the trend line, and the price rallied by 2% since then. In addition, the dynamic line (green) of BTC’s Chaikin Money Flow (CMF) was spotted at 0.06, indicating climbing coin accumulation.
Hold your horses
While the last few weeks have been marked by increased coin accumulation (which is usually a precursor to a price rally), a CryptoQuant analyst believes that the king coin might see a further decline in price.
According to analyst ghoddusifar, BTC formed a down-sloping pennant pattern on 27 November. He believed that this pattern, while not common, is “usually associated with the continuation of the downtrend.” As a result, Ghoddusifar advised investors to wait for a breakout before making any trade decision.
Ghoddusifar further found that the price stopped declining during BTC’s last bear cycle in December 2018, when the coin reached the Stock To Flow level of the previous cycle. He stated:
“In fact, the previous Stock to Flow acted as a support and target level for Bitcoin at that time. Once again, Bitcoin is approaching its previous cycle’s stock-to-flow price. It is possible that this price (which is around 8,000 to 11,800 dollars) will serve as the target and the return point of Bitcoin (like the previous cycle).”
Dogecoin Price Prediction: Fresh Rally Likely If DOGE Holds This Support
Dogecoin rallied towards the $0.108 level against the US Dollar. DOGE is correcting gains and approaching a major support at $0.090.
- DOGE started a downside correction from the $0.1080 resistance against the US dollar.
- The price is trading well above the $0.0850 zone and the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $0.090 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
- The pair must stay above the $0.088 support zone to start a fresh rally.
Dogecoin Price Aims Fresh Increase
In the past few days, dogecoin saw a major increase above the $0.0850 resistance zone. DOGE climbed above the $0.0920 and $0.0950 resistance levels, outpacing bitcoin and ethereum.
The price even jumped above the $0.100 resistance and settled above the 100 simple moving average (4-hours). However, the bears took a stand near the $0.1080 resistance zone. A high was formed near $0.1077 and the price started a downside correction.
Doge price corrected lower below the $0.100 support. There was a move below the 23.6% Fib retracement level of the upward move from the $0.0713 swing low to $0.1077 high.
It is now trading well above the $0.0850 zone and the 100 simple moving average (4-hours). There is also a key bullish trend line forming with support near $0.090 on the 4-hours chart of the DOGE/USD pair. On the upside, the price is facing resistance near the $0.0980 level.
Source: DOGEUSD on TradingView.com
The first major resistance is near the $0.1000 level. Any more gains above the $0.1000 zone could encourage the bulls to aim a retest of $0.1080. If they push the price above $0.1080, there could be a rally towards the $0.120 level.
More Losses in DOGE?
If DOGE price fails to gain pace above the $0.10 level, it could continue to move down. An initial support on the downside is near the $0.0920 level.
The next major support is near the $0.090 level and the trend line. If there is a downside break below the $0.0960 support, the price could decline further. The main support is near the $0.0850 level. Any more losses could open the doors for a move towards the $0.0780 level.
4-Hours MACD – The MACD for DOGE/USD is now losing momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Major Support Levels – $0.0900, $0.0880 and $0.0850.
Major Resistance Levels – $0.0980, $0.1000 and $0.1080.
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