Dogecoin price prediction – Here’s how long the $0.12 support will hold on
  • DOGE’s rally reached the $0.12 support level after losing 47% of its value.
  • Weak derivatives market and on-chain numbers could complicate matters for bulls

Dogecoin’s [DOGE] After dropping more than 47% of its price in the recent pullback, the price has reached an important support level. Memecoin fell from its first quarter high of $0.22, but the decline eased around the support level of $0.12.

Since March, the $0.12 support has been a key bounce for bulls. Will it hold again towards a bullish reversal?

Dogecoin price prediction: Can we stop the fire sale at $0.12?

Dogecoin price prediction

Source: DOGE/USDT on TradingView

The daily chart showed signs of a weak bullish reversal based on the RSI (Relative Strength Index) and Chaikin Money Flow (CMF). In particular, CMF has been above average since mid-February and is slightly up at the time of writing. This highlighted the increase in capital inflows into the DOGE market.

Furthermore, the RSI made a U-turn on the downside, indicating a weakening of selling pressure. However, the price faced resistance at the descending channel (white) and the mid-level of $0.15.

Therefore, bulls need to move above $0.16 to gain market leverage before attempting to recoup the remainder of their previous losses. In fact, according to cryptocurrency analysts, Ali MartinezDOGE’s 47% pullback could position it in a huge bull run based on historical price patterns.

However, a multi-month crack below the $0.12 support could complicate things for DOGE bulls.

DOGE trading volume shrinks as market conditions weaken

Despite successfully defending the $0.12 support at the time of writing, market participants appeared overwhelmingly negative towards Memecoin. His April negative sentiment on DOGE has now extended into May, Santiment data shows.

Additionally, DOGE volumes continue to be compressed, adding to the selling pressure seen over the past few days.

Dogecoin price prediction

Source: Santiment

However, these bearish readings are not exclusive to on-chain indicators. Futures market data revealed that the DOGE market is also weak.

According to Coinglass data, DOGE’s OI (open interest) interest rate was cut in half, dropping from over $1.8 billion in March to less than $900 million in May. Open interest tracks the amount of money invested in the futures market, and in turn tracks market sentiment.

The 50% decline highlighted the bearish sentiment in the DOGE derivatives market.

Dogecoin price prediction

Source: Coinglass

That said, DOGE’s ability to defend the $0.12 support is not guaranteed given the overwhelmingly bearish outlook in on-chain and derivatives markets. on the contrary, defense The percentage of support depends on Bitcoin [BTC] Reversing recent losses.

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