Dogecoin Price Analysis: DOGE Bears Aggressively Digging Into $0.2 Support, Is It Time To Buy?
- Dogecoin struggles to sustain the uptrend above $0.2 while recovery to $0.24 and $0.3 remains doubtful.
- The IOMAP metric shines a light on an immense resistance around $0.222, likely to poke holes in the recovery boat.
Dogecoin has made a lot of progress since last week’s declines to $0.19. A recovery above $0.2 mid-week stopped short of $0.24. Another correction followed on Friday, leaving DOGE vulnerable to massive losses under $0.2.
The meme-based coin bounced off the buyer concentration zone at $0.19. Dogecoin has since moved above $0.2 and trades at $0.205 at the time of writing. Trading appears drab, with bulls not able to make progress. With overhead pressure apparent and hovering, Dogecoin requires a formidable catalyst to lift from the bearish shackles.
Dogecoin In A No-Trade Zone
The upper demand zone in green is Dogecoin’s most crucial support area. As long as it remains intact, we expect consolidation before the following action.
According to the short-term technical picture, DOGE’s sideways trading may last longer. The horizontal price action offers little trading opportunities, as reinforced by the Relative Strength Index (RSI) on the daily chart.
On the upside, Dogecoin bulls must focus on cracking through the hurdle at $0.24 to pave the way for gains to $0.24. It is worth noting that the limitation at $0.24, as highlighted by the 100-day Simple Moving Average (SMA). If pushed into the rearview, more buyers will find Dogecoin attractive amid increased speculation for resuming the uptrend to $0.3.
DOGE/USD Daily Chart
The IOMAP model by IntoTheBlock (ITB) cements the bears’ influence over the price by revealing the massive resistance zone between $0.219 and 40.225. In this range, nearly 21,500 addresses previously bought approximately 6.8 billion DOGE. Trading above this zone will be a massive challenge to the bulls; thus, recovery to $0.24 and $0.3, respectively, may take longer to materialize.
On the flip side, the meme-based token sits on top of relatively weak support areas, adding credibility to the bearish notion. However, the model brings our attention to subtle buyer congestion between $0.2 and $0.205.
Here, roughly 40,200 addresses are currently profiting from the approximately 2.3 billion DOGE bought in the zone. In other words, this support area is not strong enough to hold Dogecoin for long, implying that the price may dive further.
Dogecoin IOMAP Model
In the event overhead pressure upsurges and the upper demand zone at $0.2 fails to hold, investors should consider the idea of Dogecoin dropping to the lower demand area at $0.16, as illustrated on the daily chart.