Dogecoin price prediction shows risk of further decline – What now?
07/09/2024 04:00
Dogecoin has a bearish market structure, persistent downward momentum, and a lack of significant buying pressure- can things turn around?
- Dogecoin has a bearish market structure on the higher timeframes.
- Liquidity below $0.1 is likely to attract prices toward it before a reversal can happen.
Dogecoin [DOGE] has bounced 20% since setting the lows at $0.0913 on Friday, the 5th of July. The majority of the crypto tokens witnessed a relief bounce after the recent bloodbath but not all of them can sustain the move upward.
The price prediction for Dogecoin shows that it too might struggle to sustain the momentum. Instead, prices would likely consolidate or drop lower since the buyers remain weak.
The bulls are hanging on by a thread to the $0.1 level
Source: DOGE/USDT on TradingView
Dogecoin has fallen below the March lows and erased all the gains made in the latter half of that month. To the south, the $0.0775-$0.082 region is a the next demand zone.
It was where prices were consolidating for two months before the wild rally in February and March.
The daily RSI was below neutral 50 and indicated that the trend was still firmly bearish. The CMF was at +0.03 and highlighted capital inflow into the market. However, it is likely that the buyers are not strong enough to reverse the recent losses.
The Dogecoin price prediction remains bearish, and this bias would change if the price can climb past $0.13 and defend it as support.
More reasons why the Dogecoin price prediction is discouraging for investors
The 6-month look back period analysis by AMBCrypto of the liquidation heatmap showed three distinct bands of liquidity from $0.1-$0.112.
Last week, they were all wiped out, and the memecoin bounced to retest this region as resistance.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
The $0.0745-$0.079 region was the next closest liquidity zone. It is likely to attract DOGE to it given the trend of the market and the proximity.
Once it is taken out, the prices would be free to reverse bullishly and target the $0.18 territory.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.