- Dogecoin price deals with a weak on-chain front as fundamentals plunge.
- The transaction history model highlights immense seller congestion that may keep rejecting recovery attempts.
- DOGE's bearish outlook is accentuated by a persistent call to sell from the MACD.
Dogecoin price explores levels under $0.2 following an extended slide from highs of $0.3 traded on June 25. Generally, the meme coin has been on a downward slope since the all-time high of $0.75 on May 8. Attempts to come out of the seemingly bottomless pit have been numerous but unsuccessful.
Short-term support appears to have been established at $0.18, currently preventing DOGE from extending the bearish leg to $0.16 (support in June). As the tug of war intensifies between the bulls and the bears, Dogecoin is left in a dilemma; a break above $0.2 could catapult it to $0.3, but another daily close under the same level will trigger more losses to $0.16 and $0.1, respectively.
DOGE/USD four-hour chart
Dogecoin Price Lacks On-Chain Support
IntoTheBlock's IOMAP model shines a light on a massive on-chain resistance ahead of Dogecoin. Hence, recovery could be a challenge in the incoming sessions. The model directs attention to the most visible barrier running from $0.188 to $0.193. Here, roughly 23,500 addresses previously bought 6.62 billion DOGE. If bulls attempt to make haste above $0.2, the buying pressure will be weakened in this area, delaying recovery.
Dogecoin IOMAP model
On the flip side, Dogecoin lacks vital support areas to keep bears at bay. A slight increase in the prevailing selling pressure could bring DOGE to $0.16. Therefore, holding above $0.18 is crucial for the resumption of the uptrend above $0.2.
Consequently, the "Daily Active Addresses" on-chain metric shows a consistent decline in the level of on-chain interaction. The number of active addresses tracked on a 30-day moving average has plunged from 125,000 recorded on June 25 to nearly 50,000.
According to IntoTheBlock, the number of active users on the network gives an insight into the speculation level of investors. A continuous decline is a bearish signal because it infers that holders choose to stay on the sidelines. Therefore, Dogecoin price recovery will remain in jeopardy until we start seeing an uptick in some key on-chain metrics.
Dogecoin Active Addresses Flashing Bearish Signal
The Moving Average Convergence Divergence (MACD) indicator adds credence to the downward pull on Dogecoin. This followed a sustain sell signal when the 12-day EMA crossed below the 26-day EMA. At the same time, the downtrend becomes more apparent as the trend momentum calculator drops profoundly in the negative region.