2024-04-24 17:06:54
- Dogecoin has two important pockets of liquidity nearby that could determine the next trend.
- The lack of enthusiasm on social media needn’t be a cause for concern for investors right now.
Dogecoin [DOGE] We have seen a subdued social sentiment in recent weeks. Social media engagement fell and user activity fell along with prices.
There was evidence of that dogecoin whales go long in the futures market.
The meme coin can explode and reach a new ATH a year after the previous halving. Investors expect it to happen again. Things must change for the bulls to establish an uptrend soon.
DOGE has not had a bullish performance of with the other meme coins. For example, at the end of this edition, it is 7 days profit measured only 4.1% compared to Shiba Inu [SHIB] 20% o pepe [PEPE] 53%.
Social calculations were not kind to DOGE
The price of Dogecoin has been decreasing since March 30th. It started trending lower after retesting the $0.2 mark as resistance on April 8.
This downward movement was accompanied by a constant decline in social volume.
Social volume is the number of mentions of a token on crypto social media channels tracked by Santiment. Meanwhile, weighted sentiment has been negative throughout April.
This signaled negative DOGE engagement on social media in recent weeks.
Furthermore, Social Domain has had a strong downward trend since the last week of March. The sharp price increase of over $0.2 a month ago made Dogecoin occupy 2.8% of the total number of mentions of popular cryptocurrency-related projects.
The drop in dominance was another strong sign that interest in the meme coin has cooled for now. This may change with the price trend on the lower time frame.
DOGE holders kept the ship stable but were unprofitable
The average age in invested dollars fell massively in February and March along with rising prices.
In April, the metric began to rise further. This was a sign of accumulation among DOGE holders. Furthermore, the 90-day MVRV fell below 0, but managed to recover. It was at +0.565% at press time.
Together, the MDIA and MVRV readings gave a strong buy signal for Dogecoin. However, the Daily Active Address count continued to decline over the past month.
This was an indication of reduced interaction from users and therefore lower demand for the meme token.
Liquidity costs can be a major obstacle
The liquidation heatmap with a one-month lookback period showed that prices were just below a large liquidity pocket. The $0.166-$0.168 region has been a resistance zone for nearly ten days.
This meant that a significant number of settlement levels had accumulated above them. A price movement towards this area will lead to short liquidations.
Their forced purchases in the market after the liquidation will cause prices to rise in the short term.
Similarly, the $0.155 zone has also witnessed good liquidity build-up below it in the past week. This was from bullish speculators. Further south, the $0.136-$0.138 lows were also an area of interest.
It was possible for the Dogecoin price to take a bearish trajectory after sweeping liquidity in the $0.17 region.
This would indicate a move towards $0.155, and possibly as much as $0.136 in the coming days and weeks.
Therefore, despite the buy signal that the calculations on the chain showed, it would make more sense for traders and investors to wait.
A positive Dogecoin reaction, such as turning the $0.17-$0.18 region to support, would pose less risk to investors looking to buy the meme coin.
Using technical analysis to explore a buying opportunity
The 1-day price chart showed that the uptrend was still intact. Furthermore, the Fibonacci retracement level of 78.6% (light yellow) was also defended during the recent price decline.
While the RSI was below the neutral 50 level to highlight the bearish momentum, it was at 46.8. This value does not mean a strong downward momentum. Furthermore, OBV was also above a support level since mid-March.
The OBV findings were encouraging, showing that selling pressure was intense but not yet dominant on higher timeframes.
As mentioned above, the lower timeframe trend was bearish after retesting $0.2 as resistance.
To reverse this bearish bias, the $0.163-$0.17 region needs to reverse to become support. The $0.175 level is also a short-term resistance. It agreed well with the findings from the liquidation heat map.
File Dogecoin [DOGE] Price prediction 2024-25
In conclusion, Dogecoin’s long-term bias remains bullish. Metrics on the chain gave a buy signal, despite the lackluster social media activity.
The short-term resistance at $0.175 needs to be scaled for swing traders to gain bullish conviction in the DOGE. The next target will be the $0.2 resistance.
This is an automatic translation of our English version.
1713986858
#Dogecoin #Price #Prediction #Heres #DOGE #Buying #Opportunity