Dogecoin price prediction – Here’s where DOGE’s next buy opportunity is
  • Dogecoin has two important pockets of liquidity nearby that could determine the next trend.
  • A lack of enthusiasm on social media need not be a cause for concern for investors at this time.

dogecoin [DOGE] The past few weeks have seen a social-emotional slowdown. Social media engagement has declined and user activity has declined along with prices.

There was evidence that Dogecoin whales were going long in the futures market.

A year after the previous halving, meme coins could explode and reach a new ATH. Investors will be hoping for a repeat of that. Things need to change for the bulls to establish an uptrend in the near term.

DOGE has not shown the same bullish performance as other meme coins. For example, at the time of reporting, 7 days profit Only 4.1% was measured compared to the Shiba Inu. [SHIB] 20% or Pepe [PEPE] 53%.

Social metrics were unkind to DOGE

DOGE social metrics

sauce: Santimento

Dogecoin price has been falling since March 30th. After retesting the $0.2 mark as resistance on April 8, it turned to the downtrend.

This downward trend was accompanied by a steady decline in social volume.

Social volume is the number of mentions of a token on crypto social media channels tracked by Santiment. Therefore, weighted sentiment was negative throughout April.

This hinted at DOGE’s negative attitude on social media in recent weeks.

Additionally, social dominance has been trending down significantly since the last week of March. A month ago, Dogecoin accounted for 2.8% of all crypto-related mentions of the popular project, with the price surging above $0.2.

The decline in dominance was another strong sign that interest in meme coins has cooled for now. This can change depending on the price trend on lower time frames.

DOGE holders steadied the ship but made no profit.

doge MVRV

sauce: Santimento

The average dollar investment age fell significantly in February and March as prices rose.

In April, this indicator began to rise. This was a sign of accumulation among DOGE holders. Additionally, his MVRV for 90 days was below 0, but he managed to recover. At the time of writing, it was +0.565%.

The MDIA and MVRV indicators both showed a strong buy signal for Dogecoin. However, the daily active addresses metric continued to decline over the past month.

This indicates a decrease in interaction from users and therefore a decrease in demand for meme tokens.

Liquidity overhead can be a significant hurdle

DOGE Liquidation Heat Map

sauce: high block

A liquidation heatmap with a one-month lookback period showed the price to be just below a pocket of significant liquidity. The area between $0.166 and $0.168 has been a resistance zone for nearly 10 days.

This means that a significant amount of liquidation levels have accumulated above them. If the price moves into this zone, it could trigger a short liquidation.

If they force market purchases during liquidation, prices will rise in the short term.

Similarly, the $0.155 zone has also seen significant liquidity accumulation below it over the past week. This came from a bullish speculator. Further south, lows between $0.136 and $0.138 were also an area to watch.

Dogecoin price could take a bearish path after wiping out liquidity in the $0.17 region.

This indicates a possible move towards $0.155 and even $0.136 in the coming days and weeks.

Therefore, despite the buy signal that the on-chain indicator flashed, it is better for swing traders and investors to wait.

A positive reaction from Dogecoin, such as the $0.17 to $0.18 region switching to support, will be less risky for investors looking to buy the memecoin.

Explore buying opportunities using technical analysis

Dogecoin daily chart

Source: DOGE/USDT on TradingView

The daily price chart showed that the uptrend is still intact. Additionally, the 78.6% Fibonacci retracement level (light yellow) was also protected during the recent price drop.

The RSI was below the neutral 50 to emphasize bearish momentum, but at 46.8. This value does not indicate strong downward momentum. Additionally, OBV has also been above support levels since mid-March.

The findings from OBV were encouraging, showing that selling pressure is strong but not yet dominant on higher time frames.

As mentioned earlier, after retesting $0.2 as resistance, the trend on the lower time frame turned bearish.

To change this bearish bias, the $0.163-$0.17 area needs to switch to support. The $0.175 level also poses short-term resistance. This is in good agreement with the results from the liquidation heatmap chart.

Read the Dogecoin article [DOGE] Price prediction for 2024-2025

In conclusion, Dogecoin’s long-term bias remains bullish. On-chain metrics gave a buy signal even though social media activity was uninspiring.

Swing traders need a correction above the $0.175 short-term resistance level to gain bullish conviction on DOGE. The next target will be the resistance at $0.2.

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