Dogecoin Price Prediction: DOGE Exposed To 15% Downtrend Risk
- Dogecoin price struggles with overhead pressure at $0.2 as recovery becomes a challenging task.
- An incoming death cross could trigger massive sell orders, pulling DOGE to $0.16.
- The transaction history on-chain model by IntoTheBlock reveals immense resistance hindering Dogecoin's recovery.
Dogecoin has in nearly a week remained pivotal at $0.2. The generally up-trending cryptocurrency market from July 20 pulled DOGE to $0.23. However, bulls could not continue with the uptrend amid rising overhead pressure.
The 200 Simple Moving Average (SMA) has provided Dogecoin with short-term support, ensuring that losses do not stretch further. On the other hand, the 50 SMA limits upward action, leaving the coin between a rock and a hard place.
Dogecoin Price Bulls Running Out Of Options
Bulls must hold the support at the 50 SMA; otherwise, the odds for another correction to $0.16 will increase. Besides, the Relative Strength Index (RSI) shows that bears have the upper hand, especially after the trend strength indicator bounced from the midline. If the RSI keeps moving toward the oversold area, we anticipate losses gaining traction.
DOGE/USD Daily Chart
The daily chart could soon flip massively bearish if a death cross pattern comes into the picture. This bearish call occurs when a short-term moving average, 50 SMA, crosses below a long-term moving average, 200 SMA.
Traders use this pattern to ascertain bearish control and perhaps the beginning of a downtrend. Therefore, its occurrence on Dogecoin's chart could result in more losses aiming for $0.16 and $0.1, respectively.
According to IntoTheBlock's In/Out of the Money Around Price (IOMAP), Dogecoin is bound to face immense seller congestion zones in its quest for recovery past $0.2. The region running from $0.201 and $0.207 is the most robust resistance. Here, 55,000 addresses previously bought 7.7 billion DOGE. Attempts to slice through this range would leave bulls wounded as buying pressure gets nullified. Other key resistances to note are $0.198 and $0.21.
Dogecoin IOMAP Model Flips Red
On the flip side, Dogecoin is sitting on top of relatively weak support areas. The IOMAP directs our attention to the area between $0.189 and $0.195. Here, 48,000 addresses purchased 2.7 billion DOGE. Hence, a slight increase in overhead pressure will likely surmount the bullish pressure in this region thus, validating the downswing to $0.16.
It is worth mentioning that the uptrend may resume regardless if Dogecoin holds firmly to the crucial level at $0.2. With stability secured in the market, bulls will have the time to plan and execute a breakout mission. Trading past the 50-day SMA would be particularly bullish and may trigger massive gains heading to $0.25 and $0.3.