• Dogecoin price shows a persistent influx of active user wallets and dormant tokens recirculating.
  • DOGE price has been rejected at the $0.07 barrier.
  • Invalidation of the bearish thesis remains a breach above $0.112.

Technical and on-chain analysis note significant influence of high market cap investors on the Dogecoin price.

Dogecoin price falls as expected

Last week, Dogecoin price rallied an impressive 25% in just a few hours. A contrarian forecast was issued proposing that the uptrend move was more of a sucker’s rally than the start of a new bull run. The $0.084 level was noted as an extreme level of interest for sidelined bears to jump back into the market. 

Shortly after the contrarian piece was published, the DOGE price fell in penny-from-Eiffel style back into the $0.067 price range, losing 25% of its market value in just a few hours. A textbook smart money fakeout forecasted ahead of time for subscribers at FXStreet.

Dogecoin price currently auctions at $0.068. A sudden bullish spike above $0.07 was witnessed during the London session recovering 5% of losses. However, the New York bears came back with full force and have managed to reject the $0.07 access to the world’s favorite meme coin.

tm.doge/8/25/22

DOGE/USDT 3-Day Chart

Looking underneath the hood, it appears that large holding whales have influenced Dogecoin price throughout the year. For instance, a record-high influx of 15.5 billion dormant tokens came into the circulating market in October when the DOGE price traded at $0.25. 

The world’s notorious meme coin fell sharply weeks after losing over 75% of its market value. On June 18, an additional 5.15 billion came into circulation at the $0.067 price level. DOGE price has not been able to successfully hold grounds above the level for more than a few days throughout the summer. 

Lastly, in February of 2022, Dogecoin saw a yearly record high of 818,000 active wallets in one day when the price traded at $0.116. It appears that DOGE has a strong influence near this level, as last week’s bearish forecast also utilized $0.112 as the bearish invalidation point.

tm/doge/santimenet8/25/22

Santiment’s Price, Active Wallets & Dormant Circulation Indicator

When combined, it appears that the Dogecoin price is on a tight leash by highly influential large-cap market players. Thus, this thesis will remain bearish until $0.112 is breached. If the bulls can breach this level, they could induce an impressive 300% rally, targeting $0.25. Until then, $0.02 DOGE price remains a possibility.

In the following video, our analysts deep dive into the price action of Dogecoin, analyzing key levels of interest in the market. -FXStreet Team

 

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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

AVAX Price Prediction: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX Price Prediction: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. However, bulls currently face AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing. AVAX price has broken out of a critical hurdle and pattern.

More Avalanche news

XRP Price Prediction: Ripple bulls delay an inevitable retest of $0.60

XRP Price Prediction: Ripple bulls delay an inevitable retest of $0.60

XRP price shows a clear sign of exhaustion after overcoming the selling pressure and flipping a significant resistance level into a support floor. Adding credence to the current scenario is Bitcoin’s lack of volatility, which has caused most altcoins to come to a standstill.

More Ripple news

Ethereum Price Prediction: ETH bulls come to the rescue with a plan to revisit $1,500

Ethereum Price Prediction: ETH bulls come to the rescue with a plan to revisit $1,500

Ethereum price set up a local top after a quick run-up over the last week. This move was followed by a tight consolidation that resulted in a breakdown, allowing sidelined buyers to step up. As a result, ETH is primed for a quick run-up.                                     

More Ethereum news

Assessing the chances of Bitcoin price revisiting $20,000 before 2022 ends

Assessing the chances of Bitcoin price revisiting $20,000 before 2022 ends

Bitcoin price shows a tight consolidation in the four-hour timeframe, indicative of a volatile move. The most plausible outcome of this range tightening would be a minor correction to rebalance the imbalance present to the downside. 

More Bitcoin news

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

A massive bullish move is coming. In the last two articles, we have taken a look at why this is possible from a technical and on-chain perspective. In this weekly forecast, we will take a look at Bitcoin’s monthly performance for the last decade and determine if this bullish outlook is possible. 

Read full analysis

BTC

ETH

XRP