Dogecoin (DOGE), the popular and largest crypto meme coin by market capitalization, is currently facing a potential price decline as sentiment in the overall cryptocurrency market begins to shift. Over the past few days, there has been a sense of confusion surrounding whether the price of DOGE will rally or decline.
The daily chart for Dogecoin has shown bearish price action, indicating a possible price decline in the near future. CoinPedia’s technical analysis reveals that DOGE is currently testing a crucial support level of $0.383 after breaking out from an ascending triangle price action pattern. Despite recent volatility, DOGE has managed to retest the breakdown level and is currently finding support at this level.
If Dogecoin fails to hold the $0.383 support level and closes a daily candle below this level, there is a strong possibility that the price could decline by 15% to reach $0.31 in the coming days. However, the Relative Strength Index (RSI) for DOGE is currently at 50, indicating that the coin is not in the overbought region and suggesting a potential price reversal in the near future.
On-chain analytics firm Coinglass reports that traders are largely responsible for keeping DOGE at the $0.383 support level. Data from the Binance DOGEUSDT Long/Short ratio shows a ratio of 5.13, indicating strong bullish sentiment among traders. Additionally, 83.68% of the top Binance traders hold long positions on DOGE, while 16.32% hold short positions.
Combining these on-chain metrics with the technical analysis, it appears that bulls are working to maintain the price above the crucial support level and prevent further price decline.
As of the latest update, DOGE is trading near $0.39 with a price decline of over 2.65% in the past 24 hours. The trading volume has also dropped by 26%, indicating lower participation from traders and investors as sentiment turns bearish.
Overall, the future price movement of Dogecoin remains uncertain, with a potential for both a price rally or decline. Traders and investors are advised to closely monitor the market developments and key support levels to make informed decisions regarding their DOGE holdings.