Dogecoin Price Prediction: DOGE recovery in jeopardy, on-chain metrics suggest


  • Dogecoin is having a difficult time renewing the uptrend following the correction from $0.088.
  • The IOMAP model and the network growth models suggest that recovery will not be a walk in the park.
  • DOGE will abandon the potential breakdown to $0.35 if it closes the day above the 100 SMA.

Dogecoin has been declining in a descending parallel channel after suffering rejection from the record high of $0.088. It appears that the impact caused by Elon Musk has diminished, allowing Doge to seek consolidation. Meanwhile, the 'Meme Coin' is rocking at $0.053 in a generally downwards market.

Dogecoin struggles to reclaim critical support levels

Following the correction from the all-time high, Dogecoin has not managed to reverse the trend. Several support levels have been shattered, including $0.07, $0.06, the 50 Simple Moving Average (SMA), and the 100 SMA on the 4-hour chart.

Similarly, it is worth noting that the break below the middle boundary of the channel opened the door to more losses. For now, bulls are tasked with defending the lower edge of the channel; otherwise, DOGE will freefall to the 200 SMA, currently at $0.035.

The Moving Average Convergence Divergence (MACD) validates the bearish outlook as it closes in on the midline. In the meantime, consolidation likely to take precedence because the MACD line (blue) and the signal line do not show any clear sense of direction.

DOGE/USD 4-hour chart

DOGE/USD 4-hour chart

A comprehensive look at the IOMAP model developed by IntoTheBlock (ITB) brings to light increasing overhead pressure, likely to delay Dogecoin recovery. The IOMAP displays key buying and selling positions, which can be used as anticipated support or resistance.

The region between $0.054 and $0.056 hosts nearly 57,000 addresses that had previously bought 8.5 billion DOGE. Other medium-strong seller concentration zones can be observed toward $0.06, implying achieving a new all-time high will be an uphill battle.

Dogecoin IOMAP chart

Dogecoin IOMAP chart

On the flip side, Dogecoin is not strongly supported. However, the IOMAP directs the traders' attention to the range running from $$0.048 to $0.05. Here, roughly 12,800 addresses had previously bought approximately 4.5 billion DOGE.

The "Daily New Addresses" model by ITB adds weight to the bearish outlook due to the consistent drop in the number of new addresses joining the network. Dogecoin's unique addresses topped out at nearly 134,000 on January 29, but this figure has declined to roughly 37,000 addresses per day.

In other words, the network is not receiving the attention it was receiving toward the end of January. The token inflows and outflows have also been impacted negatively. Thus, recovery will be difficult, or DOGE may continue to drop in value.

Dogecoin new addresses chart

Dogecoin new addresses chart

Looking at the other side of the fence

Note that holding above $0.05 and the descending channel lower boundary support may avert the potential freefall to $0.035. Simultaneously, reclaiming support at the 100 SMA and perhaps the middle boundary will pave the way for gains above $0.06 while setting Dogecoin on another path to new all-time highs.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Weekly Forecast: BTC price surges despite threat of crash to $36k

Bitcoin price shows lackluster performance after the recent crash, giving rise to the credibility of the run-up to $50,000. As the September 24 daily candlestick bathes in red, the chances of an uptrend continue to diminish.

More Bitcoin news

XLM Price Prediction: Stellar traps bulls as it targets $0.195

Since Wednesday, the Stellar (XLM) price has been paring back losses, but price action has already started to fade on XLM. Bulls cannot push the price above $0.30, and XLM price has startedto form a bull trap.

More Stellar Lumens News

Polkadot Price Prediction: DOT will hit $40 by October

Polkadot (DOT) bears are scrambling to cash in on their profits as price action for DOT reverses quite rapidly, with bulls overtaking control and pushing price action back toward levels achieved before the correction began. 

More Polkadot News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

China’s central bank cracks down on illegal financial activities from overseas cryptocurrency exchanges. The recent announcement marks the People’s Bank of China's (PBoC) strongest move against cryptocurrency mining and trading to date. 

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP