Dogecoin Price Plummets from $0.115 to $0.098, Marking a 14.6% Decline
Over the past two weeks, Dogecoin price tumbled from $0.115 to $0.098, representing a 14.6% loss. This downturn, occurring within the framework of a falling wedge pattern, underscores the ongoing bearish sentiment among traders, who continue to sell into price rallies. Should the broader crypto market face a deeper correction in September, DOGE could slip below the critical $0.091 support level, further bolstering the sellers’ grip on the market. The question now is whether buyers will step in to challenge this downtrend.
Dogecoin Price Faces Prolonged Decline Amid Falling Wedge Structure
For over a month, Dogecoin has been trading between $0.115 and $0.093, showing a lack of decisive action from both buyers and sellers on shorter timeframes. However, a closer look at the broader price action reveals the presence of a falling wedge pattern. Under the influence of this structure, DOGE has steadily declined from $0.228 to $0.097 over the past five months, equating to a 57% loss in value. During this period, Dogecoin’s market cap has also shrunk, falling from $14.2 billion.
With Bitcoin struggling to sustain a price above $60,000, bearish momentum in the altcoin market continues to gain strength. If Dogecoin breaks below the $0.091 support level, selling pressure could intensify, potentially pushing the price down by an additional 11.6% to $0.08.
Despite this negative outlook, on-chain metrics offer some glimmers of hope for bullish traders. According to data from Santiment, the 30-day Market Value to Realized Value (MVRV) Ratio has dropped to -3.59%. This indicates that short-term holders are currently facing losses, which could lead to panic selling. However, such conditions often attract large market players looking to accumulate assets at discounted prices, possibly igniting a reversal.
Additionally, the In/Out of the Money Around Price (IOMAP) metric suggests limited resistance for Dogecoin until it reaches the $0.11 level. Around 1.74 million addresses are holding a combined 17 billion DOGE, creating minimal supply pressure up to this price point.
If bullish momentum gains traction, Dogecoin could see a 6-8% rise, targeting the overhead trendline at $0.105. A successful breakout above this wedge resistance could accelerate gains, potentially driving the price toward $0.15 within the next 2-3 weeks.
Leave a comment