- Dogecoin has failed to break above the hurdle at $0.06, paving the way for another correction.
- DOGE's transaction history reveals that recovery would be an uphill battle.
- A decreasing social volume is a bearish signal for Dogecoin in the near term.
Dogecoin has been stuck in consolidation for nearly a week. The mundane trading action comes after another groundbreaking endorsement from billionaire and founder of Tesla, Elon Musk. The brain behind SpaceX, a private space exploration organization, recently said that he would put a literal Dogecoin on the moon.
Dogecoin swing massively upward, trading at $0.07 but immediately retreated to the region between $0.54 and $0.06. Breaking the upper limit has been a gruesome and unsuccessful endeavour. In the meantime, Dogecoin is teetering at $0.058 amid dominant consolidation.
Dogecoin's bearish impulse amid consolidation
The Bollinger band on the four-hour chart emphasizes the consolidation. The middle boundary currently offers support, but if broken, DOGE may fall toward the anchor at $0.054. Moreover, the Relative Strength Index hints at the trading lasting longer. The same directionless market is stressed by the Moving Average Convergence Divergence (MACD) currently at leveling at 0.00044.
DOGE/USD four-hour chart
IntoTheBlock's IOMAP model shows that transaction history of Dogecoin by grouping addresses and the coins purchased various ranges. The model reveals that DOGE may continue in the no-trade zone due to the massive resistance and support levels. The region between $0.062 and $0.063 hosts around 14,500 addresses, which previously bundled up nearly 6 billion DOGE.
On the downside, immense support has been accorded to the Meme Coin, as highlighted by the on-chain model. The most robust buyer congestion zone runs from $0.055 to $0.056. Here, approximately 104,000 addresses had previously bought roughly 7.9 billion DOGE.
Dogecoin IOMAP chart
Looking at the other side of the picture
Following Elon Musk's endorsement, Dogecoin's social media-related mentions soared massively alongside the breakout to $0.07. However, a high social volume usually culminates in the price dropping due to the inability to sustain the upswing.
Dogecoin social volume
On the other hand, a low social volume means that the price may continue to dip or stagnate in consolidation. For now, the least resistance path seems downward until Dogecoin starts to command a growing social volume.