Dogecoin Price Prediction: DOGE Downtrend To $0.2 Likely To Gain Traction
- Dogecoin price holds at the lower boundary of a descending channel while the 200 SMA caps the immediate upside.
- A massive resistance has been highlighted by the IOMAP around $0.24 and will likely hinder bulls from achieving their recovery goals.
Dogecoin is attempting recovery after an uptick in overhead pressure triggered significant losses last week. The losses were not unique to the meme-based coin, which saw a drop from $0.35 to levels around $0.21.
Live price data by CoinGecko shows that DOGE has an accrual of 23.4% in losses over the last seven days. Minor progress has been made over the previous 24 hours, while Dogecoin teeters at $0.23 at writing.
Dogecoin has a market value of $31 billion and is on the verge of losing its spot in the top ten. However, it’s still the ninth-largest cryptocurrency in the market, head of USD Coin valued at $29.5 billion.
Dogecoin Price Struggles To Keep The Uptrend Intact
Dogecoin is trading within the confines of a descending parallel channel based on the daily chart. This channel formed the moment DOGE bounced off August highs of $0.35. The lower boundary support keeps the token from dropping drastically to $0.2 and the areas below.
Marginally above the prevailing price, the 200-day Simple Moving Average (SMA) prevents bulls from lifting the price higher. Action toward $0.3 will not be easily achievable, especially with more hurdles expected at the 100-day SMA, the 50 SMA, and the channel’s middle boundary.
The Moving Average Convergence Divergence (MACD) indicator also has a bearish outlook, following a sell signal presented on September 7. Many analysts and traders incorporate this technical index that follows the trend of an asset and calculates the momentum.
As overhead pressured increased from $0.35, the 12-day exponential moving average (EMA) crossed below the 26-day EMA. This served as an exit signal for many traders, suggesting that Dogecoin’s downtrend will extend further. With the MACD slicing through the mean line into the negative region, losses are bound to soar in the coming sessions.
DOGE/USD Daily Chart
The IOMAP model by IntoTheBlock (ITB) fortifies the bears’ influence over the price by revealing the massive resistance zone running from $0.238 and $0.244. In this range, nearly 34,000 addresses previously bought approximately 6.6 billion. Trading above this zone will be a daunting task for the bulls; thus, recovery could take longer to materialize.
Dogecoin IOMAP Metric
On the flip side, Dogecoin sits on relatively weak support areas, adding credibility to the bearish notion. However, the model brings our attention to subtle buyer congestion between $0.201 and $0.209.
Here, roughly 34,000 addresses are currently profiting from 1.35 billion DOGE bought in the zone. It means that this support area is not strong enough to hold Dogecoin longer and may shatter with a slight increase in selling pressure.