Dogecoin has finally reached a very critical moment. The former favorite of the token world has turned into a Downtrendwith recent charts revealing a worrying decline.
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Analysts have pointed out that DOGE has fallen below a key resistance area that previously served as a crucial support level, a sign of further losses ahead. Investors are now concerned that if it continues to fail to find stability, it could drop another 38% to 40%. Other key support levels lie at $0.055-$0.0628; a break of these levels could pave the way for sharper declines.
DOGE Stock Technical Analysis on Weekly Timeframe
DOGE stock is moving in a downtrend on the weekly time frame. The price has broken below the blue box, which was acting as a major support and is now acting as resistance.
If the market does not turn from bearish to bullish, DOGE is likely to drop towards… pic.twitter.com/ukbVPEArsG
— Cryptorphic (@Cryptorphic1) August 15, 2024
Dogecoin: Market Sentiment
Market sentiment now holds the key to Dogecoin’s immediate fate. Overall, market sentiment is not very bullish at the moment. Changing the status quo, i.e. Dogecoin returning to a strong bearish reaction, would require a significant change in the market.
In the absence of a market reaction level, there may be a bearish extension in Dodge priceHowever, if the coin tries to move upwards, resistance will be located at $0.104 and $0.118. Meanwhile, the support accumulation area is identified at $0.6243. If DOGE manages to bounce above these key levels, its short-term outlook remains uncertain.
On-chain data and holder behavior
However, on-chain data from IntoTheBlock has managed to provide some insight into the sentiment of the coin’s holders. The data shows that around 73% of current Dogecoin holders at current prices are profitable. Notably, 67% of these holders have held their DOGE for more than a year, or in other words, have a strong hand in the market. While the short-term outlook remains cautious, there is serious confidence among long-term holders.
Long-term potential and prospects
While resistance continues for now, there seems to be a glimmer of hope for DOGE’s long-term growth. Over the next three months, CoinCheckup reports that DOGE It is expected to increase by 114%.All of these potential upsides can be supported by technical indicators: at the time of writing, both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are pointing to an upward trajectory.
With a position above key support levels and the overall crypto market holding steady, this should translate into massive gains.
After six months, the outlook looks bright – there could be a growth of 61.58%. This is a medium-term outlook for Dogecoin. It is expected to rise by 64.49% by the end of the year, and the demand for Dogecoin and the alignment with the gradual positive development taking place within the cryptocurrency ecosystem should fuel the growth.
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The way forward
In the short term, Dogecoin remains uncertain amidst bearish trends and critical support levels. However, the long-term outlook looks promising if market conditions improve. Data that most long-term holders are currently profitable adds another layer of optimism. Due diligence is needed by investors to maintain a balance between optimism and caution while keeping an eye on technical indicators and the overall market trend.
Featured image by X/@swimming for adultschart from TradingView
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