- Dogecoin is at a critical point, with a potential 25% drop to $0.077 if it fails to hold support at $0.094, or a 55% rally to $0.172 if it can turn $0.108 into a strong support level.
- Significant resistance around $0.116 and bearish market sentiment complicate the outlook.
Dogecoin (DOGE) has been navigating a consistent downtrend since early April. The leading meme coin’s price has formed a descending wedge, a pattern typically associated with a bullish breakout. However, the current market scenario suggests a more complex picture, with significant resistance that might push DOGE’s price lower before any potential rally.
Dogecoin Is Leaning in Favor of the Bears
The market sentiment around Dogecoin is presently bearish, as indicated by the MVRV (Market Value to Realized Value) long/short difference. This metric, crucial in assessing investor behavior, reveals that short-term holders are in a favorable position, often a precursor to increased selling pressure.
As short-term holders anticipate further declines, many are likely to liquidate their positions, intensifying the negative outlook. This selling pressure is contributing to the downward force on Dogecoin’s price, reinforcing the bearish sentiment surrounding the meme coin.
Additionally, market depth data shows significant buying activity at a 10% premium from the current price, around $0.116. Historically, about 31.42 billion DOGE has been purchased at this level. However, currently, roughly 75 million DOGE is being sold, positioning $0.116 as a critical resistance level. This selling activity suggests that $0.116 will continue to act as a substantial barrier, reinforcing the broader bearish momentum.
DOGE Price Prediction: Not a Rally Yet
Dogecoin is currently trading within a descending wedge pattern at approximately $0.105. For a bullish reversal, DOGE would need to establish $0.108 as a robust support level. If this happens, the next target would be $0.118, a key resistance point that could open the door to further gains.
However, the significant selling pressure at $0.116 makes a downtrend more probable. If Dogecoin loses its current support at $0.094, it could decline toward $0.077, representing a 25% drop. This level serves as the next major support for the altcoin.
On the flip side, if Dogecoin manages to flip $0.108 into support, it could pave the way for a breakout. In this case, the cryptocurrency has the potential to invalidate the bearish thesis and target $0.172 in the long term, representing a 55% rise. However, $0.118 must first be breached for this to happen, which remains a considerable challenge for DOGE.
Dogecoin’s price movement is at a critical juncture, with a potential 25% drop if it fails to hold its support at $0.094, or a 55% rally if it can flip $0.108 into a strong support level. Investors should watch these key levels closely as they could determine the meme coin’s next significant move.
