• Dogecoin price crashes 35% after the hyped “dogeday420” fails to gather steam.
  • Despite losing its upswing momentum, the meme coin could still surge if it bounces off the immediate demand.
  • On-chain metrics point to a grim outlook for DOGE.

Dogecoin price slows down its collapse as it approaches a crucial barrier. If the buyers make a comeback here, DOGE could propel to the local top.

Dogecoin price at crossroads

Dogecoin price faced an intense sell-off as it failed to perform during the much-anticipated “Doge day” on April 20. Since then, DOGE has dropped nearly 35% to a crucial barrier.

This demand zone ranges from $0.227 to $0.269 and is the best chance buyers have at rescuing the meme-themed coin from sellers’ wrath, especially since it coincides with the 50 Simple Moving Average (SMA) on the 4-hour chart. In case Dogecoin price sees a resurgence of investors or a spike in buying pressure due to an unforeseen event, DOGE might retest the local top at $0.448 after a 65% upswing.

A confirmation of this upswing will arrive after DOGE produces a decisive close above the 50% Fibonacci retracement level at $0.319.

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

While the technicals point to a bullish picture if the demand zone holds, on-chain metrics suggest that the investors are disinterested in the meme coin and are slowly pulling out of DOGE.

If this trend continues to follow, Dogecoin price might see a range-bound, non-volatile move for the foreseeable future.

According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, nearly 47,000 addresses that purchased 12.63 billion DOGE at $0.32 are “Out of the Money.” Hence, a short-term spike in buying pressure will face selling pressure around this level from investors who might want to break even.

Additionally, the lack of support levels makes it challenging for the bulls to surge higher, adding credence to a potential drop.

DOGE IOMAP chart

DOGE IOMAP chart

A similar pessimistic outlook is seen across the number of new addresses, which has dropped from 160,000 to 56,000 since April 16. This 65% slump provides headwinds for the bullish momentum.

DOGE daily new addresses chart

DOGE daily new addresses chart

The number of transactions worth $100,000 or more has crashed from roughly 11,000 transactions on April 16 to 3,300 on April 21, a 70% crash.

This drop-off can be used as a proxy to investors’ interest. Fleeing capital from the Dogecoin network paints a bearish picture for Dogecoin price, suggesting that these market participants are reallocating their holdings or booking profit.

DOGE large transactions chart

DOGE large transactions chart

Therefore, if the said demand zone is breached with a solid 4-hour candlestick close below $0.227, it would invalidate the bullish outlook and may trigger a 35% sell-off to the subsequent area of support that stretches from $0.116 to $0.144.

This crash could make a pitstop at the 100 SMA at $0.173.


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


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP