Dogecoin: Why $0.12 is key as bears surround DOGE
  • The EMA has formed a death cross, indicating that DOGE could fall below $0.12.
  • 90-day MCA rose, indicating selling pressure on the coin.

April 27th, Dogecoin [DOGE] An attempt was made to revisit $0.17, but the 4-hour chart showed resistance at $0.15 pausing the move. As a result, the coin’s price returned to $0.14.

But Dogecoin’s challenge appears to be more than just rejection. AMBCrypto discovered this by checking the Exponential Moving Average (EMA). For those unfamiliar, EMA measures the direction of a trend over a period of time.

I can’t find a buyer

According to our analysis, the 50 EMA (yellow) crossed above the 20 EMA (yellow) on April 24, suggesting a bearish trend. Since then, the EMA’s position has not changed.

This trend is also known as a death cross and means the price of DOGE is more likely to face sharp corrections. The Elder Force Index (EFI) supported this possibility.

EFI tracks buying and selling activity in the market. At the time of writing, his EFI on the DOGE/USD 4-hour chart is flat, indicating a significant lack of activity from traders using Dogecoin.

Dogecoin price is showing a bearish trend

Source: TradingView

Additionally, Fibonacci indicators indicated a possible collapse in DOGE. This is due to the location of the 1.618 Fib level, which is also tagged as the Golden Ratio.

As of this writing, the 1.618 Fib sits at $0.12. This gave a hint that Dogecoin’s next support could be around this region. If the bulls are able to defend the support, DOGE could rebound towards $0.16.

However, if the support at $0.12 cannot be defended from the bears, the coin could fall to $0.10. Despite the decline in DOGE, on-chain data showed that 76.66 units of the total supply were profitable.

Heats hit DOGE

This ratio may be related to the coin’s 90-day performance. According to AMBCrypto evaluation Within the market, the price of the coin increased by 83.65%.

A large supply of profits does not necessarily bode well for cryptocurrencies. This is because some participants are likely to book profits, especially now that the previous bullish momentum has slowed.

If that happens, the price of DOGE could fall below $0.12, and the supply of profits could fall below 70%.According to Average Coin Age (MCA), Santiment data Indicated indicators have skyrocketed.

MCA is the average age of all tokens on the blockchain. This indicator correlates with price. If MCA decreases, it means that many new coins have been accumulated and sent to cold wallets.

Old Dogecoin movement suggests decline

Source: Santiment

Whether it’s realistic or not, DOGE’s market cap in BTC terms is:

If this is true, the short-term forecast for DOGE would be consistent with an increase. However, the age of the coins was high, suggesting that many older coins had been moved.

In terms of price, this suggests selling pressure, and this move could coincide with asset liquidation.

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