- Dogecoin price eyes a major retracement as it gets rejected at the $0.213 resistance level.
- Transaction data indicates the recent sell-off could exacerbate if DOGE produces a close below $0.200.
- A breach of $0.230 to create a higher high could invalidate the bearish outlook.
Dogecoin price set up multiple higher highs since July 17 but is currently showing weakness, indicating a shift in trend. On-chain metrics suggest that losing a critical support level might trigger a slew of selling pressure, pushing DOGE lower.
Dogecoin price anticipates a lower high
Dogecoin price was on a clear uptrend since July 17 as the buyers set up two consecutive higher highs. However, the July 26 swing high at $0.233 seems to be the last one since DOGE has dropped roughly 13% from this point to where it currently trades.
Moreover, the $0.213 resistance level has been serving as a major opposing force that has prevented a move higher. The recent rejection on August 1 seems to be leading to a 10% retracement to the $0.183 demand barrier.
A decisive close below this support floor will set up a lower low, confirming the shift in trend to bearish. Such a move will open the path toward the $0.162 foothold, a roughly 20% downswing from $0.205.
DOGE/USDT 9-hour chart
Supporting this massive downtrend is IntoTheBlock’s Global In/Out of the Money (GIOM) model, which shows that breaching the $0.20 level will push a majority of the investors around this area underwater.
Roughly 144,000 addresses purchased 14.84 billion DOGE at an average price of $0.201. Therefore, a decisive 9-hour candlestick close below this barrier will put these market participants “Out of the Money.” This development might push the holders to sell their holdings at breakeven, adding selling pressure to the already bearish situation and knocking the Dogecoin price lower.
DOGE GIOM chart
Adding a tailwind to the bearish thesis is the large transaction metric, which tracks transactions greater than $100,000. This on-chain indicator paints a clear downtrend from 7,000 to 1,100 over the past three months.
This 84% decline indicates that whales are fleeing the network, suggesting that they are not interested in investing in DOGE.
DOGE large transaction chart
Lastly, the daily new addresses joining the meme coin’s network have reduced from 104,000 to 21,500 over the past three months. This 79% plummet indicates that investors are exiting the Dogecoin network, which falls in line with the large transaction metric, painting a bearish outlook for the dog-themed cryptocurrency.
DOGE daily new addresses chart
While things look bleak for Dogecoin price, investors need to note that a decisive close above $0.233 that sets up a new higher high would invalidate the bearish thesis and indicate that the uptrend is back on track.
Such a move opens up the possibility of a retest of the supply zone ranging from $0.255 to $0.290.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.