Story Highlights:
- A symmetrical triangular formation reflected the price consolidation of DOGE.
- The horizontal $0.142 level, aligned to several technical supports, creates an area of high demand.
- Dogecoin’s 24-hour volume is $825.9 million, which indicates a loss of 16%.
DOGE has seen a significant drop in market capital this week, amid Bitcoin’s correction after the halving. Dogecoin ( ) fell for 5 consecutive days, with the price dropping from $0.164 to $0.146. This represents an 11.17 percent loss. The asset price is currently testing the monthly triangle support, which indicates the possibility of a reversal.
Read also: Shiba Inu vs Dogecoin – Which is Better and More Likely to Perform This Year?
Support at $0.145: Will it usher in a new rally?
For nearly two months, the Dogecoin price has been trading sideways and can be traced through two converging trendlines of the daily chart. These trendlines acting as dynamic resistance and support indicate the formation of the symmetrical triangle pattern.
Currently, the DOGE price trades at $0.145 and witnessed demand pressure at the triangle’s lower trendline as displayed by a long-tail rejection. The asset has shown a history of bouncing back from the mentioned support, signaling a high area of interest for buyers.
According to a recent analysis by Santiment, a renowned crypto analytics firm, there is a notable divergence in the activity of cryptocurrency wallets. The data indicates that the total number of active non-empty Bitcoin wallets is on the rise, suggesting an increased interest in Bitcoin despite its price volatility.
📊 The total amount of non-empty #Bitcoin wallets are rapidly growing despite choppy prices. #Altcoin wallets for assets like #Dogecoin have flattened after enormous rises earlier this year. #Cardano is one of the few networks to see active wallets drop. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy
— Santiment (@santimentfeed) April 27, 2024
In contrast, altcoin wallets for assets like Dogecoin have seen a plateau in activity, which follows significant increases earlier in the year. This trend could signal a shift in investor behavior, with traders potentially seeking stability in less volatile coins amid uncertain market conditions.
Thus, the DOGE price prolongs its consolidation for a few days or weeks which aligns with the development of a triangle pattern.
Anyhow, for this memecoin to enter a direction trend, the buyers must breach from either of the triangle’s trendlines. A potential breakout from the upper boundary will accelerate the buying momentum and bolster the asset to break $0.2.
Technical Indicator
- BB Indicator: The downtick in the lower boundary of the Bollinger band indicator highlights the sellers are still aggressive towards this asset.
- Moving Average Convergence Divergence: A notable bearish reversal from MACD and signal line indicates no sign of reversal yet.
Related Articles
- 2 Trending Altcoins To Hold Targeting 100X Profit Post Bitcoin Halving
- Dogecoin Price Forecast: Is the Current Dip a Buying Opportunity?
- https://coingape.com/markets/crypto-price-prediction-key-altcoin-bitcoin-retreats-to-60k/
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.