Dogecoin drops 11% this week: Can DOGE rebound to $0.127 or higher?
  • Dogecoin has fallen below a critical support level.
  • Market sentiment around meme coins remains bearish.

Dogecoin [DOGE] Investors have been struggling for days as the weekly and daily charts remained in the red, and things could get even worse as the meme coin fell below a critical support level.

Does this suggest that prices will fall further in the coming days?

Dogecoin’s New Problems

CoinMarketCap data The world’s largest meme coin has revealed that its price has fallen by over 11% in the past seven days. In the past 24 hours alone, the coin’s value has fallen by over 4%.

At the time of writing, DOGE is trading at $0.119 with a market cap of over $17.2 billion. The meme coin was testing key support at the time of writing.

DOGE Drops Below Support Level

Source: TradingView

AMBCrypto planned to look at DOGE’s metrics to see if the meme coin could test support, and an analysis of IntoTheBlock’s data revealed that 72% of DOGE investors are in profits.

However, the Interstars’ trust in the coin faded.

According to our analysis, the average DOGE investor balance has fallen to $2,600 in recent days, suggesting that investors were expecting the meme coin’s price to fall further.

Source: IntoTheBlock

What to expect from DOGE

AMBCrypto then checked out the memecoin’s on-chain data to get a better understanding of what to expect from it.

According to data analysis by Santiment, Dogecoin’s MVRV ratio dropped sharply last week, which can be inferred as a bearish signal.

Additionally, daily active addresses have declined after a spike on June 20, reflecting a decline in meme coin usage.

The meme coin’s weighted sentiment also remains in the negative territory, suggesting that bearish sentiment towards the coin prevails in the market.

Source: Santiment

AMBCrypto then planned to take a look at the daily chart of DOGE to see what indicators suggest about the meme coin’s future movements.

According to our analysis, Chaikin Money Flow (CMF) has recorded a decline, indicating a further price drop.

However, the Relative Strength Index (RSI) is about to enter the oversold zone, which could increase buying pressure and lift the meme coin’s price. The MACD is also indicating a possible bullish crossover.

Is your portfolio green? Dogecoin Profit Calculator

This meant that the trend could reverse in the near future.

If a trend reversal occurs, DOGE will first reach $0.127 and a breakout above this level could see it reach $0.148 in the coming weeks.

Source: TradingView

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