- Dogecoin fell 11.42% last week.
- Indicators suggested DOGE needs to claw back $0.11 to avoid further decline.
Over the past month, Dogecoin [DOGE] saw significant gains on the price charts, with an increase of 13.66%. As such, the memecoin rose from a low of $0.088 to a high of $0.132.
However, over the past 24 hours, DOGE has shown a moderate recovery, rising 2.8%. At the time of writing, Dogecoin was trading as high as $0.108. This marked an 11.422% drop in the weekly charts.
The recent price movement raises questions about whether Dogecoin will recover and continue its monthly uptrend, or whether bears will take over the market.
To this extent, popular crypto analysts Ali Martinez and Kevin have noted conditions that must be met for a sustained uptrend to resume.
What market sentiment says…
In his analysis states Kevin stated that current market conditions mean bearish sentiments dominate.
Source:
According to the analyst, DOGE has faked out of the macro falling wedge, which is a bearish signal.
Also, the memecoin lost all major 1-day and 4-hour moving averages (MA), which is again a bearish signal.
Therefore, the analyst argued that Dogecoin should return to $0.08 and find new support before attempting an uptrend.
On the other hand, Martinez gave the example of 60210 addresses with 36.40 billion DOGE at $0.11.
Source:
According to this analysis, DOGE needs to regain the $0.11 resistance level to maintain a bullish outlook. If the memecoin fails to do this, it will result in a massive sell-off with investors looking to cut their losses.
Normally, such a massive sell-off would result in further price declines and extend the bearish trend, as seen this past week.
What DOGE cards suggest?
Martinez and Kelvin’s analysis undoubtedly presents a bearish outlook. The question is: what do other statistics suggest?
Source: Santiment
For starters, Dogecoin’s Open Interest per exchange dropped from $224 million to $129.6 million over the past week.
This decline indicated that investors are closing their positions due to a lack of new entrants, indicating bearish market sentiment.
Source: Santiment
Furthermore, Dogecoin’s price-DAA divergence turned negative three days ago. A negative DAA divergence highlighted that fewer users are interacting with the DOGE ecosystem.
So the recent rally is not entirely supported by fundamentals, but by speculation.
Source: IntoTheBlock
Finally, Dogecoin’s daily active addresses have dropped from 144.8k to 74.7k over the past four days. A decrease in the number of active users indicates a decrease in demand or interest in the memecoin.
Read Dogecoin [DOGE] Price forecast 2024-2025
Simply put, while DOGE has staged a modest recovery on the daily charts, its weekly losses outweigh these recent gains.
Therefore, if current sentiment continues, can DOGE hold its next support at $0.098? However, upon a reversal, Dogecoin will recover $0.011105.
