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- DOGE fell below $0.063, a support level dating back to March
- If the bullish OB is not defended from June onwards, DOGE could plummet again
Dogecoin [DOGE] fell below the $0.063 support level again, retesting the level as resistance last week. The meme coin had a major social presence last week and landed in LunarCrush’s top ten from last week
Read Dogecoins [DOGE] Price forecast 2023-24
Yet this social involvement has contributed little to the demand for the currency. The price action discouraged short-term bulls, but also traded within a higher timeframe support zone.
The three-month-old bullish order block had yet to be broken. Can the DOGE bulls keep it this way?
Source: DOGE/USDT on TradingView
On June 14, Dogecoin placed a bearish candle on the daily time frame. A rally to $0.083 followed in the weeks following this event, marking this candle as a bullish order block. The sharp drop on September 11 dipped below this zone, but Dogecoin had yet to see a daily session just below the order block.
So until that happens, bulls can be hopeful of a recovery. Yet the indicators did not indicate that such a move was imminent. The Relative Strength Index (RSI) remained below neutral 50 over the past month, showing a downward trend.
The Directional Movement Index (DMI) showed that this downward trend was strong, as both the Average Directional Index (ADX) (yellow) and -DI (red) were above the 20 value. Meanwhile, the Chaikin Money Flow (CMF), which jumped earlier this month, fell towards 0, indicating a lack of significant capital inflows into the Dogecoin market.
The rising average coin age would give buyers hope in the long term
Source: Santiment
The positive market value to realized value (MVRV) ratio showed that the memecoin was overvalued and holders could make profits on the token in the coming weeks. This wasn’t an immediate threat to the bulls, but the weighted sentiment was likely to worry them.
Realistic or not, here is DOGE’s market cap in BTC terms
The sentiment metric has been negative for a month and showed that online engagement around Dogecoin was in favor of sellers. However, the average coin age of 180 days has been on a strong upward trend since June. This indicated a network-wide accumulation of DOGE, but is this enough to keep the bears at bay?