Is Dogecoin (DOGE) Headed For A 40% Slide? This Analyst Thinks So
August 16 2024 - 7:30AM
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Dogecoin has finally reached a very precarious moment. The former
darling of the meme token world turned into a bearish trend, with
recent charts unveiling a concerning decline. Related Reading:
Bitcoin Cash (BCH): Analyst Pinpoints Prime Moment For Strategic
Buy Analysts made the observation that DOGE has dropped below a key
resistance area that formerly acted as a crucial support level, a
sign of more losses in store. Investors are now worried that in
case it continues failing to find stability, it could drop another
38% to 40%. Other major support levels are at $0.055-0.0628; and
breaking these could set the stage to steeper declines. DOGE
Technical Analysis in Weekly Timeframe DOGE is in a downtrend on
the weekly timeframe. The price has broken below the blue box,
which was a key support, and it’s now acting as resistance. If the
market doesn’t shift from bearish to bullish, DOGE will likely drop
toward the… pic.twitter.com/ukbVPEArsG — Cryptorphic
(@Cryptorphic1) August 15, 2024 Dogecoin: Market Sentiment Market
sentiment now holds the key to the immediate fate of Dogecoin.
Generally, it is not very optimistic at the moment. The change of
status quo, that is, DOGE going back to a strong bearish reaction,
would require the market to change significantly. In the event that
level of the market reaction is absent, then there may be a
downward extension in DOGE price. However, if the coin tries to
move upward, resistance would be spotted at $0.104 and $0.118. At
the same time, the support accumulation zone is marked at $0.6243.
Should DOGE succeed in having a bounce above these key levels, its
short-term prospects remain uncertain. On-Chain Data And Holder
Behavior However, on-chain data from IntoTheBlock was able to
provide some insight into holder sentiment. The data showed that
around 73% of the current holders of Dogecoin at current prices are
in profit. In particular, 67% of these holders have kept their DOGE
for more than a year, in other words, strong hands in the market.
That, while the short-term perspective remains cautious, there is
serious long-term holder confidence. Long-Term Potential And
Forecast While the resistance continues at the moment, there seems
to be a silver lining for DOGE’s long-term growth. For the next
three months, CoinCheckup reports that DOGE is expected to increase
by 114%. And all these potential highs can be supported by
technical indicators: at the time of writing, both the Relative
Strength Indicator (RSI) and the Moving Average Convergence
Divergence (MACD) suggest an upward course. With a position above
key support levels and the overall crypto market remaining firm,
this should translate to massive gains. Six months down the line,
the outlook looks bright – there can be growth of 61.58%. This is a
medium-term peek into the projections for Dogecoin. Expected to be
surging by 64.49% at the end of the year, indeed the demand for
Dogecoin and compatibility with the progressive positive
development taking shape within the cryptocurrency ecosystem will
fuel growth. Related Reading: Aptos (APT) Inks 25% Gain After
Hitting A New Milestone – Details The Road Ahead In the short term,
Dogecoin remains uncertain amid bearish trends and critical support
levels. Nevertheless, the long-term perspective looks promising if
market conditions should improve. Data that most of the long-term
holders are currently in profits adds another layer of optimism.
There is a required application of due care by investors in
maintaining a balance between optimism and caution at the same time
while keeping an eye on technical indicators and the general market
direction. Featured image from X/@adultswim, chart from TradingView
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